1. Analyzing Business Markets and Business Buying Behavior
Chapter 8
Analyzing Business Markets and Business Buying Behavior

2. How to distinguish Business and Consumer markets?
Look at the purpose of uses-- 3 purposes:
Reselling?
Using in further production?
Providing service to ultimate customer?

3. Differences between Business and Consumer Markets
Fewer buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand (inelastic in the short-run and for the insignificant part)
Fluctuating demand
(to be continued)

4. Differences between Business and Consumer Markets
Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing

5. New Task Buying Modified Rebuy Straight Rebuy
Custom furniture
New security system
Buildings
Weapon systems
Involved Decision Making
Modified Rebuy
New vehicles
Elec. Equip
Computer equip
Straight Rebuy
Utilities
Office Supplies
Bulk chemicals

6. Participants in the Business Buying Process
Initiator
User
Influencer
Decider
Approver
Buyer
Gatekeeper

7. Major Influences on Industrial Buying Behavior
Level of
demand
Economic
outlook
Interest rate
Rate of techno-
logical change
Political and
regulatory
developments
Competitive
Social responsi-
bility concerns
Environmental
Objectives
Policies
Procedures
Organizational
structures
Systems
Interests
Authority
Status
Empathy
Persuasive-
ness
Interpersonal
Age
Income
Education
Job position
Personality
Risk attitudes
Culture
Individual
Business
Buyer

8. Info Search/ Eval Purchase Post Purchase
Problem Recognition
Need
Recognition
General Need Description
Product Specification
Info
Search/
Eval
Supplier Search
Proposal Solicitation
Supplier Selection
Purchase
Order Routine Specification
Post
Purchase
Performance Review