Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 1 Organisational Buying Behaviour Chapter 17   The similarities and differences between consumer/household behaviour and organisational buying behaviour   How marketers can analyse organisational buying behaviour and apply it when developing marketing strategies   The ways in which large, complex organisations approach different types of purchase decisions   How certain consumer behaviour concepts can be adapted to studying and understanding organisational buying behaviour

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 2 Overall Model of Organisational Buying Behaviour

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 3 Organisational Culture and Organisational Decisions

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 4 Organisational Values  Different values create different corporate cultures ôIBM versus apple – IBM is corporate, formal and takes itself seriously – Apple is less formal, creative and promotes a more open organisational style

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 5 Organisational Demographics  Organisational characteristics ô size ô activities and objectives ô location ô industry category  Organisational composition characteristics ô gender ô age ô education ô income distribution of employees

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 6 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  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 7 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  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 8 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  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 9 Purchase Situation  Straight-rebuy ôlow-involvement decisions ômade by a single person in the organisation  Modified-re-buy ÷decision requires that buyer organisation expends more effort and includes more people because of an important 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  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 10 Organisational Decision Process Problem recognition Information search Alternative evaluation Purchase decision Product usage Evaluation