Chapter 3. Organizational Buying Behavior the salient dimensions of how organizations buy Understanding the organizational buying process is a key prerequisite for the development of business marketing strategy L.P. CHEW

examine an eight stage model of the organizational buying process The eight stages may be contracted depending upon the nature of the purchasing situation. The next focus of the chapter is a discussion of the types of buying situations which occur in organizational buying. These include "new task," "straight rebuy," and "modified rebuy."

Organizational Buying Process Eight stage model of the organizational buying process Problem recognition –Determine product dimensions and quantity –Precise description of product characteristics –Search and qualification of potential sources –Acquisition and analysis of proposals –Evaluation of proposals and supplier selection –Selection of an order routine Performance feedback and evaluation

New task Firm has no experience in purchasing the product; requires extensive problem solving –Strong predispositions toward suppliers do not exist –Two distinct buying decision approaches are employed –Judgmental new task: when unfamiliar with parts, technology, etc. –Strategic new task: when decision is extremely important to the firm

Straight rebuy A recurring requirement; buyers have substantial experience with the purchase – Information needs are low; little need to evaluate alternative solutions –Routinized response behavior; selection of – vendor from a list of acceptable vendors –Choice criteria are well developed –Strong predisposition to certain suppliers

Modified rebuy Buyer perceives benefits from a reevaluation of alternatives LIMITED PROBLEM SOLVING THERE ARE TWO TYPES SIMPLE COMPLEX Complex: involves a large set of choice alternatives IN VS OUT SUPPLIER

Forces Shaping Organizational Buying Behavior ENVIRONMENTAL ORGANIZATIONAL GROUP INDIVIDUAL

ORGANIZATIONAL GROUP INDIVIDUAL INSIGHTS POWER INFLUENCE POLITICAL VALUE ROLE GROUP

and now MR. ROGERS THEORY OF ADOPTION, DIFFUSION and INNOVATION The foldable lens OPTHALMIC OPINION LEADERS and other adopter groups. Remember your bell curve. Let’s relive it! Not Fred but Everett !!!!!!

BA 303  opportunityisnowhere lpc