17–1 Chapter 17 Business-to-Business Buying Behaviour Similarities and differences between consumer/household behaviour and the behaviour of businesses Analysing business buying behaviour and developing marketing strategies Types of purchase decisions by large and complex organisations, and approaches used Adapting consumer behaviour concepts to understanding business buying behaviour Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–2 Overall Model of Organisational Buying Behaviour

17–3 Organisational Culture and Organisational Decisions

17–4 External Factors Influencing Culture: Organisational Demographics Organisational characteristics – size – activities and objectives – location – industry category Organisational composition characteristics – gender – age – education – income distribution of employees Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–5 Reference Groups Like consumer behaviour, organisational behaviour and purchasing decisions are influenced by reference groups In industrial markets, the most powerful type of reference group is that of lead users Trade associations Financial analysts Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–6 Lead Users Lead users are innovative organisations that derive a great deal of their success from leading change As a result, their adoption of a new product, service, technology, or manufacturing process is watched and emulated by the majority Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–7 Role of Lead Users in Encouraging Development and Adoption of Online Services

17–8 Internal Factors Influencing Organisational Culture: Organisational Values Different values create different corporate cultures – IBM versus Apple  IBM is corporate, formal and takes itself seriously  Apple is less formal, creative and promotes a more open organisational style Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–9 Organisational Values that Influence Organisational Culture

17–10 Internal Factors Influencing Organisational Culture Shared values and value conflicts Perception Motives and emotions—organisational decisions tend to be less emotional than many consumer purchase decisions Learning—organisations learn through their experiences and perceptions Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–11 Personal, Organisational and Shared Values

17–12 Perception the critical activity that links individual consumers to group, situation, and marketer influences Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–13 Motives and Emotions Firms have objectives for purchasing, and therefore a rational approach to purchasing Can appeal to the emotions of the individuals making the decision Develop a communication to ‘excite’ the buyers Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–14 Learning Like individuals, organisations learn Seen as guidelines and policies for purchasing Can be cognitive or experiential Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–15 The Impact of Advertising on Sales

17–16 Unlearning High-Involvement Negative Experiences

17–17 Types of Organisational Decisions and High-/Low-Involvement Processes

17–18 The Organisational Purchase Process: Purchase Situation Straight-rebuy – low-involvement decisions – made by a single person in the organisation Modified re-buy – decision requires more effort and includes more people because of modification to the product, delivery, price or terms and conditions New task – first-time buy – lots of individuals influencing and involved with decision-making process Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–19 Organisational Decision Process Problem recognition Information search Evaluation and selection Purchase and decision implementation Usage Postpurchase evaluation Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–20 Purchase and Postpurchase Evaluation Purchase implementation Payment Postpurchase evaluation Customer satisfaction Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

17–21 Next Lecture… Chapter 18: Consumers and Society Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins