Chapter 6 Business Buyer Behavior Idil Yaveroglu Lecture Notes

Business Buyer Behavior The buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. Purchases are not for personal use or consumption

Business Buyer Behavior

What is Business Marketing? Business products: Are used to manufacture other products Become part of another product Aid the normal operations of an organization Are acquired for resale without change in form Key is intended use

Business Markets Consumers Markets -Chicken nugget supplier Keystone Foods -Beef patties supplier Lopez Foods Gaviña Gourmet Coffee -Coffee supplier Consumers Markets

Key Differences of Business Markets Marketing Structure and Demand Business markets contain fewer but larger buyers Are more geographically concentrated Demand is derived from consumer markets Demand is more inelastic Demand fluctuates more, and more quickly

Derived Demand tires steel leather steel

Intel http://www.youtube.c om/watch?v=GWuYsET QYzk

Key Differences of Business Markets Nature of Buying Unit Business purchases involve more buyers Business buying involves more professional purchasing effort – it is more rational.

Key Differences of Business Markets Types of Decisions and the Decision Process - Business buyers face more complex buying decisions - The business buying process is more formal - Buyers and sellers work closely together to build long term relationships – greater dependency

Buying Situations Straight Rebuy: A routine reordering from the same supplier of a product that has been purchased in the past Modified Rebuy: Situation in which purchasers require some additional information, however, a fairly routine process is followed New Buy: First-time or unique purchase situation that requires considerable effort to collect extensive information about alternatives in the marketplace

Business Buyer Behavior Buying Center The decision-making unit of a buying organization Includes all individuals and units that participate in decision making Roles include: Users Buyers http://www.youtube.com/watch?v=SkACN1p-k6I Influencers Deciders Gatekeepers

How the buying situation affects buying center behavior Slide 6-26

Comparing the stages in consumer and organizational purchases

Stages in the Business Buying Process