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7/30/2019 Group 6 - Topic 3
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DEAN KAMEN (the awardwinning inventor) revealed
his innovation:
A two-wheeled battery-
powered device designed for
a single standing rider.
It is also called The Human
Transporter
DEAN KAMEN
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What type of
business productis the Segway?
Explain
Question 1:
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A product used tomanufacture other
goods or services, to
facilitate an
organizations
operations, or to resellto other customers.
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MAJOR
EQUIPMENT
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Why it is MAJOR
EQUIPMENT?
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LARGE ~ As big as an average adult body.
~ 80-pound industrial version and
70-pound consumer model.
EXPENSIVE ~ 80-pound industrial version
priced at $5,000~ 70-pound consumer model
costs about $4,000
DEPRECIATE OVER TIME~ Wear and tear
~ Technology change over time
~ Obsolete
~ Competition from others
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Question 2:
Describe the buying process
that you would expect the U.S.Postal Service to use. Include
references to the buying
behavior roles of various
buying-center participants. Do
the same thing for Amazon and
briefly summarize the
differences you would expect to
find.
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Industrial buyers
Those who purchase itemson behalf of their business
or organisation.
Consumer buyers
Those who purchase itemsfor their personal
consumption.
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The Buying
Process
Leads to aDecision to
Buy!!!
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1. Identify or need
recognition
2. Search
3. Evaluate
4. Decide5. Purchase
6. Reevaluate
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The buying process starts withneed recognition. At this stage, the
buyer (U.S Postal Service)recognizes a problem or need.
No matter how long the processtakes, the buying decision alwaysbegins when folks become aware of
a need.
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An aroused customer then needs
to decide how much information (if
any) is required.
A customer can obtain information from severalsources: Personal sources: family, friends, neighbours. Commercial sources: advertising, salespeople,
retailers, dealers, packaging, point-of-sale displays Public sources: newspapers, radio, television,consumer organizations, specialist magazines
Experiential sources: handling, examining, using the
product
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While gathering information, they refine andevaluate all the buying criteria that will affect the
decision to purchase and narrow the field ofchoice to the best few alternatives.
In the evaluation stage, the customer mustchoose between the alternative brands, productsand services.
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They need to decidewhether to make apurchase or not.
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Once theyreach a decision
and choose,
they take actionby making a
purchase.
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R
E
E
V
AL
U
A
T
E
It is common for customers to
experience concerns after making apurchase decision.
The customer, having bought a product,
may feel that an alternative would havebeen preferable.
In these circumstances, the customer will
not repurchase immediately, but it islikely to make an evaluation about the
products.
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BUSINESS BUYING PROCESS
Identify The
ProblemGeneral Need
Description
ProductSpecification
Supplier
SearchSupplierProposal
Solicitation
SupplierSelection
Order-Routine
Specification
PerformanceReview
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BUSINESS BUYING
BEHAVIORIt is the
purchasingbehavior ofbusinesses
who buyfrom other
businesses.
Aspects Of Business BuyingBehavior
Buying centers
Evaluative criteria
Buying situationsBusiness ethics
Customer service
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BUYING CENTERSAll those persons in an organization who
become involved in the purchase decision.
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Initiator
~ First person whosuggesting to make apurchase.
~ E.g. Chief Executive
Officer
Influencer / Evaluator
~ Second in-line in makingthe decision.
~ E.g. Secretary, Advisor /Counselor)
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Gatekeepers
~ Anyone who controlsaccess to other BuyingCenter members.
~ E.g. AdministrativeAssistant.
Decider
~ Person who makes the
final purchasingdecision, formal/informal.
~ E.g. CEO, Purchasing
Manager
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Purchaser
~ Under department of finance,who negotiates the purchaseand responsible for dealingwith suppliers and placingorders.
~ E.g. Purchasing Agent.
Users
~ Employees who willactually use the product,as sometime employeesare allowed to have theirsay.
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VS
The U.S. Postal Service use Segway (Human Transporter) for their
own use which is for their employees to send mails on mail
routes in selected cities. So, they only have to buy just enough for
their employees to use.
While for Amazon, they make a bulk-buying purchase because the
Amazon buys Segway for their employees to navigate around the
warehouse fulfilling customer orders and also to resell to the
consumers.
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U.S
POSTAL
SERVICE
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AMAZON
SELLING
SEGWAY
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HND BM 11/02/GROUP 1