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