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8/3/2019 30082735 Purchase Proccess Post Purchase Behaviour
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Purchase Process&Post Purchase Behavior
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Consumer Purchasing Process.
purchase - the acquisition of something for payment;"they closed the purchase with a handshake."
It consists five steps
Recognition of an unsatisfied needs.
Information Search
Evaluation of alternatives Purchase decision.
Post purchase behavior.
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Key Terms
Buying Behavior
The decision processes and acts of people involvedin buying and using products
Consumer Buying Behavior
Buying behavior of people who
purchase products for personaluse and not for business purposes
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Consumer Decision-Making
Process
PostpurchaseBehavior
Purchase
Evaluationof Alternatives
Information Search
Need Recognition
Cultural, Social,Individual andPsychological
Factorsaffect
all steps
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1. Need Recognition
Preferred State
Marketing helps
consumers recognize(or create) an imbalance
between present statusand preferred state
When a current product isnt
performing properly
When the consumer is runningout of an product
When another product seems
superior to the one currently used.
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2. The information search stage
An internal search involves thescanning of one's memory to recall previous
experiences or knowledge concerningsolutions to the problem-- often sufficient forfrequently purchased products.
An external search may be necessarywhen past experience or knowledge is
insufficient, the risk of making a wrongpurchase decision is high, and/or the cost ofgathering information is low.
Personal sources(friends and family)
Public sources (ratingservices like Consumer
Reports)
Marketer-dominated
sources (advertisingor sales people)
The evoked set: a group ofbrands from which the buyer can
choose
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Determinants of External Search
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3. Evaluation of Alternatives
Product Choice
Brand Choice Dealer Choice
Purchase Timing
Purchase Amount.
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4. Purchase
Choosing the product or brand to be boughtbased on the outcome of the evaluationstage
The choice of seller may affect the final
product selection.Factors such as terms of sale, price,
delivery, and warranties may affect thesale.
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Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Under promise &Over deliver
Cognitive Dissonance
?Did I make a good decision?Did I buy the right product?
Did I get a good value?
5. Post Purchase Behaviour
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Post - Purchase Behaviour
Satisfaction
Actions Use and Disposal.
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Corporate Purchasing Process.
All production firms have the need ofsupplies of materials and services from
external sources. This makes purchasing,one of the most significant functions ofany Production Manager.
Purchasing function may include the purchase ofRaw Materials.
In simple words we can say thatPurchasing is the act of exchange of goodsand services for money or moneys worth.
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Definition
According to LEVIS:-
Purchasing is the acquisition bymanufacture
of any necessary primary materialsuppliers, equipments by any method
whatsoever.
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Objectives
Purchasing items with right price.
Purchasing items with right quality. Purchasing items at right time.
Purchasing items from right source.
Purchasing items of right quantity.
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Steps Of Purchasing Procedure
The purchasing generally comprises the followingsteps:
1) Recognition of the need2) Selection of the supplier3) Placing the purchase order4) Follow up of the order5) Receiving and inspection of the materials6) Payment of the invoice7) Maintenance of the records & Maintenance of the
vendor relations.
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PURCHASE SYSTEMS
Pre-purchase System.
Ordering System Post Purchasing System.
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Pre-purchase System:
Includes making requisitions, requirementprogrammes,selection of suppliers, obtainquotations and evaluating them.
Ordering System:Once the decision on supplier & the rates arefinalized the order is placed with the selected
supplier. The next task is to place the Order.
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Order form Contains.
Purchase Order reference number
Description Of materials & detailed spcs.
Quality Required and Delivery Schedule.
Price and Discounts.
Shipping Instructions.
Location Where Matls. Are to be shipped. Signature Of materials Manager.
Detailed Terms Of Conditions.
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Post Purchase System
Includes follow-up procedure, receipt and
checking invoices. Whole sys operates in probabilistic condition.
Once items are received, they are checkedfor quality, quantity, specifications etc.
Invoices are also checked for correct tallywith PO details.
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Special Purchase Systems
Forward Buying
Tender Buying Blanket Order
Zero Stock
Rate Contract
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Forward buying
the purchasing period say 1 yr. will be taken in advance andCommitment is made for qty, rate, delivery schedulebyconsidering availability of funds and the requirements.
Used for public buying to avoid favourism to a specific vendor.
Tender Buying: Preparing Bidders list
Advertising tenders
Receiving bids
Evaluating Bids
Placing of orders with bidders with lowest cost.
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Blanket Order
Organization will enter in to agreement with its
supplies to receive items for a required qty at aparticular rate over a period of time.
Zero Stock :
JIT and Zero inventory concept Suppliers near to plant are considered.
Organization even provide technical know-how,QC support etc. to its suppliers.
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Rate Contract
Very much used in public sector and Govt.
departments The suppliers are on rate contract with DGS&D
for a specific period.
Organization can place orders to straight awaywith such firms without going through the lengthyprocedure of purchasing.
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Aspects Of Purchase Management
Price forecasting
Purchasing of capital equipments International purchasing
Public buying
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Price Forecasting
Its prediction of future prices
It helps in buying materials in right time and of right qty.
Especially while impact of seasonal variation is present.Methods.
Charting method
Moving average method
Regression methods Exponential smoothing method
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Purchasing Of Capital Equipments
These are having very less frequency.
As having huge capital outlay under fixed Over heads, acareful ansys should be done before buying these items.
Various Approaches:
Pay back period method
Rate of Return method
Present worth method
Annual equivalent method
Future worth method
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Options
Purchase of new equipment
Purchased of used equipments Leasing
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Public Buying
Here the centralized buying concept waspromoted to satisfy the demand of theorganizations like defense, Railways, Post &telegraphs, State govts, public sector & quasipublic bodies through DGS&D which is the
centralized purchasing organization of India.
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Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Under promise &Over deliver
Cognitive Dissonance
?Did I make a good decision?Did I buy the right product?
Did I get a good value?
5. Post Purchase Behaviour
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Post Purchase Behavior
This refers to the behavior of a consumer after purchasing a product.They may be satisfied or dissatisfied with it. Thissatisfaction/dissatisfaction will result in certain consequences.
They first exhibits a behavior and latter tries to justify it by forming anattitude in self justification.
If satisfied..He would regularly buy the product and develop a loyalty. Also there
exist positive word of mouth.
If Dissatisfied..He would stop buying the products, there is no loyalty building. Alsothere exist negative word of mouth. He feels mental tension also.
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Continue..
If Dissatisfied..
He would stop buying the products, there isno loyalty building. Also there exist negativeword of mouth. He feels mental tension also.
This is known as Cognitive dissonance or Post
purchase dissonance.
It refers to the anxiety or doubts theconsumer have after making purchase.
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