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When you finish this chapter, you should: Know who the business and organizational customers are, see why multiple influence is common in business and organizational purchase decisions and understand how it affects the practice of marketing, understand the problem-solving behaviour of organizational buyers, know the basic methods used in organizational buying,...
Chapter 7: Business and Organizational Customers and Their Buying Behavior For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter Objectives When you finish this chapter, you should 72 1. Know who the business and organizational customers are 2. See why multiple influence is common in business and organizational purchase decisions 3. Understand the problem solving behavior of organizational buyers 4. Know the basic methods used in organizational buying 5. Understand the different types of buyerseller relationships and their benefits and limitations 6. Know about the number and distribution of manufacturers and why they are an important customer group 7. Know how buying by service firms, retailers, wholesalers, and governments is similar to —and different from— buying by manufacturers 8. Understand the important new terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Different Types of Customers Manufacturers Producers Farms, mines, etc Financial Institutions Other providers All business and organizational customers Middlemen Governments Nonprofits Exhibit 71 73 Wholesalers Retailers Federal State and Local National Local For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buying Centers Buyers Users Buying Center Gatekeepers Influencers Deciders Exhibit 72 74 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Overlapping Needs Risk Innovation Job security Survival Comfort Individual’s Needs Career advancement Customer satisfaction Overlap in Needs Money-rewards Other needs Company’s Needs Growth Profit Other needs Exhibit 73 75 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Organizational Buying Processes Type of Process Characteristics New-Task Buying Modified Rebuy Straight Rebuy Time Required Much Medium Little Multiple Influences Much Some Little Review of Suppliers Much Some None Information Needed Much Some Little Exhibit 74 76 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Basic Methods in Organizational Buying Inspection Sampling Basic Methods Description Negotiated Contracts 77 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buyer-Seller Relationships Information sharing Linkages Finance R&D Cooperation Quality Quality R&D Salesperson Purchasing manager Supplier Relationship Accounting Marketing Accounting Production Exhibit 76 78 Customer Production Engineering Legal bonds Adaptations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service Producers Retailers & Wholesalers Governments 79 Focus: Grouped by Industry Focus: Close to Customers Focus: Buying for Targets Focus: Bids & Regulations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Business and Organizational Customers ISO 9000 Purchasing Managers Multiple Buying Influence Buying Center Vendor Analysis NewTask Buying Straight Rebuy Modified Rebuy Requisition 710 Inspection Buying Sampling Buying Description Buying Competitive Bids Negotiated Contract Buying JustinTime Delivery Reciprocity NAICS Codes Open to Buy Resident Buyers Foreign Corrupt Practices Act For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... Nonprofits Exhibit? ?7? ?1 7? ?3 Wholesalers Retailers Federal State and Local National Local For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buying... Inspection Sampling Basic Methods Description Negotiated Contracts 7? ?7 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buyer-Seller Relationships... Engineering Legal bonds Adaptations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service