Within the organization buying activity consists of two major parts the buying

Within the organization buying activity consists of

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Within the organization, buying activity consists of two major parts: the buying center and the buying-decision process. The model in Figure 6.1 suggests four questions about business buyer behaviour: What buying decisions do business buyers make? Who participates in the buying process? What are the major influences on buyers? How do business buyers make their buying decisions? Figure 6.1: A Model of Business Buyer Behaviour 6.2.1 Major Types of Buying Situations There are three major types of buying situations. Straight Rebuy: Here the buyer reorders something without any modifications. Modified Rebuy: In this situation, the buyer seeks a change in specifications, prices, terms, or suppliers. New Task: Here the company is buying the product for the first time and faces the greater costs and risks.
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3/4/2015 3 6.2.2 Participants in the Business Buying Process Who does the buying of the goods and services needed by business organizations? The decision-making unit of a buying organisation is called its buying centre : all the individuals and units that participate in the business decision-making process. The buying center includes all members of the organization who play any of five roles in the purchase decision process: users, influencers, buyers, deciders, and gatekeepers. The buying center is not a fixed and formally identified unit within the buying organization. It is a set of buying roles assumed by different people for different purchases. 6.2.3 Major Influences on Business Buyers Business buyers are subject to many influences when they make their buying decisions. Business buyers respond to both economic and personal factors. When suppliers’ offers are very similar, business buyers have little basis for strictly rational choice. Because they can meet organizational goals with any supplier, buyers can allow personal factors to play a larger role in their decisions. Figure 6.2 lists various groups of influences on business buyers environmental, organizational, interpersonal, and individual.
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