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Chapter 3
Organisational Buying &
Buying Behavior
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DINH Tien Minh
University of Economics of HCMC
Faculty of Commerce – Tourism – Marketing
DINH Tien Minh
Objectives
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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.
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Outline
3.1 Purchasing Objectives
3.2 Organisational Buying Process
3.3 Types of Purchase or Buying Situations
3.4 The Buying Center
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3.5 Models of Organisational Buying Behavior
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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
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3.1. Purchasing Objectives (cont’)
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© 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
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Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3
rd
edition.
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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.
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3.2. Organisational Buying Process (cont’)
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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.
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3.2. Organisational Buying Process (cont’)
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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.
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3.2. Organisational Buying Process (cont’)
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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.
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3.2. Organisational Buying Process (cont’)
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3.3. Types of Purchase or Buying Situations
Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3
rd
edition.
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Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3
rd
edition.
3.3. Types of Purchase or Buying Situations
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3.4. The Buying Center
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3.5. Models of Organisational Buying Behavior
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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.
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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
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