Like households, organisations make many buying decisions. This lecture will build on the previous discussion of consumer behaviour and apply the concepts to organisational buying. As with previous lectures, we will apply these concepts to enable us to analyse buying decisions and use this information to learn how marketers can develop improved marketing strategies.
Chapter 17 Business-to-Business Buying Behaviour • Similarities and differences between consumer/household behaviour and the behaviour of businesses • Analysing business buying behaviour and developing marketing strategies • Types of purchase decisions by large and complex organisations, and approaches used • Adapting consumer behaviour concepts to understanding business buying behaviour Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17–1 Overall Model of Organisational Buying Behaviour 17–2 Organisational Culture and Organisational Decisions 17–3 External Factors Influencing Culture: Organisational Demographics • Organisational characteristics – – – – size activities and objectives location industry category • Organisational composition characteristics – – – – gender age education income distribution of employees Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17–4 Reference Groups • Like consumer behaviour, organisational behaviour and purchasing decisions are influenced by reference groups • In industrial markets, the most powerful type of reference group is that of lead users • Trade associations • Financial analysts Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17–5 Lead Users • Lead users are innovative organisations that derive a great deal of their success from leading change • As a result, their adoption of a new product, service, technology, or manufacturing process is watched and emulated by the majority Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17–6 Role of Lead Users in Encouraging Development and Adoption of Online Services 17–7 Internal Factors Influencing Organisational Culture: Organisational Values • Different values create different corporate cultures – IBM versus Apple IBM is corporate, formal and takes itself seriously Apple is less formal, creative and promotes a more open organisational style Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17–8 Organisational Values that Influence Organisational Culture 17–9 Internal Factors Influencing Organisational Culture • Shared values and value conflicts • Perception • Motives and emotions—organisational decisions tend to be less emotional than many consumer purchase decisions • Learning—organisations learn through their experiences and perceptions Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 10 Personal, Organisational and Shared Values 17–11 Perception the critical activity that links individual consumers to group, situation, and marketer influences Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 12 Motives and Emotions • Firms have objectives for purchasing, and therefore a rational approach to purchasing • Can appeal to the emotions of the individuals making the decision • Develop a communication to ‘excite’ the buyers Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 13 Learning • Like individuals, organisations learn • Seen as guidelines and policies for purchasing • Can be cognitive or experiential Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 14 The Impact of Advertising on Sales 17–15 Unlearning High-Involvement Negative Experiences 17–16 Types of Organisational Decisions and High-/Low-Involvement Processes 17–17 The Organisational Purchase Process: Purchase Situation • Straight-rebuy low-involvement decisions – made by a single person in the organisation – • Modified re-buy – decision requires more effort and includes more people because of modification to the product, delivery, price or terms and conditions • New task first-time buy – lots of individuals influencing and involved with decision-making process – Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 18 Organisational Decision Process Problem Problem recognition recognition Information Informationsearch search Evaluation Evaluation and and selection selection Purchase Purchaseand and decision decisionimplementation implementation Usage Usage Postpurchase Postpurchase evaluation evaluation Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 19 Purchase and Postpurchase Evaluation • Purchase implementation • Payment • Postpurchase evaluation • Customer satisfaction Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 20 Next Lecture… Chapter 18: Consumers and Society Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17– 21 ... McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17 20 Next Lecture Chapter 18: Consumers and Society Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer. .. McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17 14 The Impact of Advertising on Sales 17 15 Unlearning High-Involvement Negative Experiences 17 16 Types... style Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 17 8 Organisational Values that Influence Organisational Culture 17 9 Internal Factors Influencing