06 - The behaviour of buyers II - Collectives

Question 1

What are some differences in B2B and B2C markets?

Answer 1

• MORE PEOPLE INVOLVED
• FEWER BUYERS AND SELLERS
• DERIVED DEMAND
• MORE RATIONAL / LESS EMOTIONAL DECISIONS
• MORE LONG TERM AND MORE COMPLEX
• MAKE OR BUY

Question 2

What models are there for industrial buying and what do they tell us?

Answer 2

• Grand flow models
• The buygrid (Grewal et al, 2015)
• The revised buygrid (Grewal et al, 2015)

A illustration of what phases a company goes through when buying

Question 3

Grand flow model

Answer 3

This model illustrate different phases a company is going through before, during and after a purchase

Question 4

Explain The Buygrid

Answer 4

The (traditional) Buygrid model explains different phases a company goes through when buying.

There is three different types of purchases
- New task (follows all 8 steps of the model)
- Modified re-buy (Limited steps of the model)
- Straight re-buy (Very few steps of the model)

New task example: Byggematador så som skal lave et helt nyt projekt

Modified re-buy example: Byggematador som laver huse, men som skal lave i et nyt område

Straight re-buy: En byggematador som køber skruer, søm, møtrikker etc.

Question 5

Why did the buygrid model need to be revised?

Answer 5

Buying between companies have become more complex and technology, co-creation of value as well as the importance of suppliers is not taken into account in the traditionally buygrid.

Purchasing between companies has also become a cycle and not a linear process

Question 6

Explain the revised buygrid model

Answer 6

The revised buygrid model is a cycle with 4 stages in:

• Reassessment
• Confirmation
• Implementation
• Evaluation

There are 3 different buy-types

RER = Routinized Exchange Relationships

Routine buying, might not be any people doing the buying but computers/software

TBO = Transactional Buying Operations

Defined as one-time agreement that impose neither obligation nor expectation on buyers and sellers to engage in future business. Could be auctions, bids for specified good or services. TBO have short time horizon, quickly finalizedm, Demand is unpredictable and therefore RER is not usable - Goods are not complex or important enough to do OBR. In TBO can be 1 person doing the buying

OBR = Organic Buying Relationships

Require ongoing human involvment, interaction. Could be co-development between buyer/supplier or Integrated solutions (paying for miles of use rather than buying tires)

Question 7

What is the traditional family lifecycle? (Commuri and Genty, 2000)

Answer 7

1. Young single
2. Young couple
3. Full nest
4. Empty nest
5. Old single

Question 8

What is the modern family lifecycle? (Commuri and Genty, 2000)

Answer 8

A more complex process than the traditional family life cycle