1. Chapter 6 Business Buyer Behavior
Idil Yaveroglu
Lecture Notes

2. 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

3. Business Buyer Behavior

5. 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

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

7. 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

8. Derived Demand
tires
steel
leather
steel

9. Intel
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10. 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.

11. 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

12. 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

13. 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
Influencers
Deciders
Gatekeepers

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

15. Comparing the stages in consumer and organizational purchases

16. Stages in the Business Buying Process