Chapter 3 Organizational Buying and Buyer Behavior Flashcards
The individuals and organizations that have an interest in the company, its operations, and its performance
Stakeholders
A collection of individuals with a stake in the buying decisions
Buying center
Product ____ serves as an internal brand much the same way that national consumer brand reassures buyers about quity, function, nd value in the consumer market.
Specification
Situations in which the buying center determines that the problem or solution is somewhat similar to past problems or solutions
Modified rebuy
Involves abbreviated steps, fewer people in the buying center, and less time to completion
Straight rebuy
The buying decision process tends to be more rigorous and time consuming
New Task
What are the four process flow stages in the buying decision process?
Definition
Selection stage
Deliver solution stage
Endgame stage
What steps in the buying decision process are included in the definition stage?
problem recognition
general need description
product specification
What steps of the buying decision process are included in the selection stage of the process flow model?
Solution provider search
Acquire solution provider(s)
What steps of the buying decision process are included in the deliver solution stage of the process flow model?
Customize as needed
Install/test/train
What steps of the buying decision process are included in the endgame stage of the process flow model?
Operate solution
Reach end result
Evaluate outcomes
Determine next set of needs
What are the three types of needs present in the buying decision process?
organization’s needs, buying center individual’s needs stemming from their role in the buying center, and buying center member’s personal needs
common practice of asking for suppliers to quote a piece of business
Request for quotation
the total of all impressions that a customer has of the firm
value image
What determines the needs of the organization?
The organization’s customer needs
How do buyers protect themselves from single-source and inflexible price situations
By seeking alternate and additional suppliers
Business markets are often oligopolies: T or F
T
What activities are included in the solution stage of the process flow model?
Customization, testing of early versions, delivery of prototypes, and incorporation into manufacturing trials, installation and testing of the full-scale solution, training of the buyer’s employees, and resolution of supply chain issues
Building relationships helps to address which needs?
Personal and role related needs
A requirement for a quick decision tends to do what?
Work against rigor and care and tends to reduce scope of investigation
Complexity in the buying process tends to do what?
Complexity tends to lengthen the process
Importance and risk aversion tend to do what in the buying process?
It tends to make them proceed with more vigor and care while also involving people higher in the organizational hierarchy
What influences the decision making of individuals in the buying center?
Culture of the firm
Risk aversion present in the culture
Reward system in place
Amount of vertical and horizontal management involvement
What determines the attitude toward projects in an organization?
The mission, goals, and objectives of the organization
Do individuals in the organization react to situations in the buying center with the same beliefs as in their private lives?
Yes
How do business marketers create customer loyalty?
- Long term contracts
- Financial and emotional investment by both the selling organization and the buying organization in the success of the effort
- Organizational relationships are built on commitment, personal relationships are built on trust
What model states that the decision makers do not know all possible outcomes or payoffs and have limited motivation to search for additional alternatives, opting for the first alternative that meets minimum standards of performance.
Bounded rationality
Who forms the value image of a business marketer’s offering?
The customer
