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8/14/2019 Developed by Cool Pictures and MultiMedia Presentations Developed by Cool
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Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
8/14/2019 Developed by Cool Pictures and MultiMedia Presentations Developed by Cool
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Copyright 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
OrganizationalBuying Process
1. Problem
Recognition
2. General
Description
of Need
3. Product
Specifications
4. SupplierSearch
5. Acquisition
and Analysis
of Proposals
6. Supplier
Selection
7. Selection
of
Order Routine
8. Performance
Review
8/14/2019 Developed by Cool Pictures and MultiMedia Presentations Developed by Cool
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Three Buying Situations(slide 1 of 4)
1. New task
2. Modified rebuy
3. Straight rebuy
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Three Buying Situations1. New Task (slide 2 of 4)
New taskthe problem or need is totally
different from previous experiences.
Significant amount of information is required.
Buyers operate in the extensive problemsolving stage.
Buyers lack well defined criteria.
Lack strong predispositions toward asolution.
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Three Buying Situations2. Modified Rebuy (slide 3 of 4)
Modified rebuydecision makers feel there
are benefits to be derived by reevaluating
alternatives.
Most likely to occur when displeased withthe performance of current supplier.
Buyers operate in the limited problem
solving stage.
Buyers have well defined criteria.
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Three Buying Situations3. Straight rebuy (slide 4 of 4)
Straight rebuythe problem or need is a
recurring or continuing situation.
Buyers have experience in the area in
question. Require little or no new information.
Buyers operate in the routine problem
solving stage.
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Buying Decision Approaches
Causal purchasesinvolve no information search or analysis.
Routine low prioritydecisions are more important and
involve a moderate amount of analysis.
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Enables individual employees to buy online while the
company retains control of the purchasing process.
The Buy-Side Requisitioning Process
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Forces Influencing Organizational Buying
Behavior
Environmental
Forces
Organizational
Forces
Group
Forces
Individual
Forces
Organizational
Buying
Behavior
Economic Outlook:
Domestic & Global
Pace of TechnologicalChangeGlobal Trade Relations
Goals, Objectives, and
Strategies
Organizational Positionof Purchasing
Roles, relative
influence, and patterns
of interaction of buying
decision participants
Job function, past
experience, and buying
motives of individual
decision participants
A projected change in
business conditionscan drastically alter
buying plan.
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With rising competitive pressures
managers are using rigorous cost
modeling approaches to identifyfactors that drive the cost of
purchased goods and services.
The Buygrid Framework for Organizational Buying Situations
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Questions for the Industrial Salesperson
Which member takes part in the buying
process?
What is each members relative influence in the
decision? What criteria is important to members in the
evaluation process?
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Members of the buying center assume different roles
throughout the procurement process.
Clues for
Identifying
PowerfulBuying
Center
Members
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Selective Process & Cognition
Selective exposure.
Selective attention.
Selective perception.
Selective retention.
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Perceived Risk Components
1.Uncertainty about the outcomes
of a decision.
2.The magnitude of
consequences associated with
making the wrong selection.
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The behavior oforganizational buyers
is influenced by
environmental,
organizational, group,
and individual factors.
Major Elements of Organizational Buying Behavior