29/08/2012 1 Chapter 3 Organisational Buying & Buying Behavior www.dinhtienminh.net DINH Tien Minh University of Economics of HCMC Faculty of Commerce – Tourism – Marketing DINH Tien Minh Objectives 2 Understand organisational buying objectives. Gain knowledge organisational buying process including the types of buying situation. Identify the members of decision making unit. Understand some of models of organisational buying behavior. 29/08/2012 2 Outline 3.1 Purchasing Objectives 3.2 Organisational Buying Process 3.3 Types of Purchase or Buying Situations 3.4 The Buying Center 3 3.5 Models of Organisational Buying Behavior DINH Tien Minh 4 3.1. Purchasing Objectives Buying the right item in the right quantity, at the right price, for delivery at the right time and place. What’s right for each dimension? Delivery/ Availability Product quality Lowest price Services Supplier relationship DINH Tien Minh 29/08/2012 3 5 3.1. Purchasing Objectives (cont’) DINH Tien Minh © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The firm and personal objectives. More complex than the consumer decision process and takes place within formal organization’s budget, cost, and profit considerations. 3.2. Organisational Buying Process 6 Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition. DINH Tien Minh 29/08/2012 4 Stage 1: Anticipate a problem/need and a general solution Need to provide employees with a good cup of coffee to enhance productivity. Stage 2: Determine the characteristics and quantity of a needed good or service Offering a coffee system that brews one cup of coffee at a time according to each employee’s preference. 7 3.2. Organisational Buying Process (cont’) DINH Tien Minh Stage 3: Describe characteristics and the quantity of a needed good or service Firms need a simple system for brewing a good cup of coffee; quantity requirements are easily correlated to the number of coffee drinkers . Stage 4: Search for and qualify potential sources Choice of supplier. 8 3.2. Organisational Buying Process (cont’) DINH Tien Minh 29/08/2012 5 Stage 5: Acquire and Analyze proposals May involve competitive bidding, especially if the buyer is the government or a public agency. Stage 6: Evaluate proposals and Select suppliers Buyers choose proposal best suited to their needs. Final choice may involve trade-offs between feature such as price, reliability, quality, and order accuracy. 9 3.2. Organisational Buying Process (cont’) DINH Tien Minh Stage 7: Select an order routine Buyer and Vendor work out best way to process future purchases. Stage 8: Obtain feedback and Evaluate performance Buyers measure vendors’ performance. Larger firms are more likely to use formal evaluation procedures. Some firms rely on outside organizations to gather quality feedback and summarize results. 10 3.2. Organisational Buying Process (cont’) DINH Tien Minh 29/08/2012 6 11 3.3. Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition. DINH Tien Minh 12 Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition. 3.3. Types of Purchase or Buying Situations DINH Tien Minh 29/08/2012 7 3.4. The Buying Center 13 DINH Tien Minh 3.5. Models of Organisational Buying Behavior 14 Nguồn: Adapted from F.E. Webster, Jr and Y. Wind, “A General Model of Organisational Buying Behaviour”, Journal of Marketing, 36, 2 (April, 1972), 12-19. DINH Tien Minh 29/08/2012 8 15 Nguồn: Adapted from Jagdish N. Sheth, “A Model of Industrial Buying Behaviour”, Journal of Marketing, 37, Oct, 1973, 50-56. 3.5. Models of Organisational Buying Behavior DINH Tien Minh www.dinhtienminh.net . organisational buying behavior. 29/08/2012 2 Outline 3. 1 Purchasing Objectives 3. 2 Organisational Buying Process 3. 3 Types of Purchase or Buying Situations 3. 4 The Buying Center 3 3.5 Models of Organisational. McGraw Hill, 3 rd edition. 3. 3. Types of Purchase or Buying Situations DINH Tien Minh 29/08/2012 7 3. 4. The Buying Center 13 DINH Tien Minh 3. 5. Models of Organisational Buying Behavior 14 Nguồn:. results. 10 3. 2. Organisational Buying Process (cont’) DINH Tien Minh 29/08/2012 6 11 3. 3. Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition. DINH