chapter 6 Flashcards
business markets and business buyer behavior B2B
Business buyer behavior
refers to the buying behavior of
the organizations that buy goods and services for use in
the production of other products and services that are sold,
rented, or supplied to others.
The business buying process
is the process where
business buyers determine which products and services
are needed to purchase, and then find, evaluate, and
choose among alternative brands.
The Business Market-
businesses that
buy goods/services to use in the production
of other products/services that are sold,
rented, or supplied to others.
Business Markets (1 of 3)
Market Structure and Demand
⚫ Derived demand
⚫ Inelastic demand
⚫ Fluctuating demand– tends to change more and more
quickly
⚫ More complex decisions
Business Markets (3 of 3)
Types of Decisions and the Decision Process
supplier development
Business buyers usually face more complex buying
decisions than consumer buyers.
Supplier development is the systematic development of
networks of supplier-partners to ensure an appropriate and
dependable supply of products and materials for use in
making products or reselling them to others.
Major Types of Buying Situations
1- Straight rebuy
2- Modified rebuy
3- New task
[Major Types of Buying Situations]
STRAIGHT REBUY
A business buying situation in which the buyer routinely reorders something without modifications.
⚫ Small Decision making units: usually one
person
⚫ Purchase same product as before
⚫Low perceived risk
⚫Routine / automated
⚫ “In” suppliers need to keep customers
happy, “Out” suppliers seek out
dissatisfied customers
[Major Types of Buying Situations]
MODIFIED REBUY
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
⚫ Customer wants some change: Intention
to modify specifications, prices,
terms, suppliers, etc.
⚫More participants than straight rebuy
⚫A “mini” or “aging” version of new task
⚫ Window of opportunity for “Out” suppliers
[Major Types of Buying Situations]
NEW TASK
New task
A business buying situation in which the buyer purchases a product or service for the first time.
⚫ Lots of decisions: product, suppliers,
payment terms, delivery times etc.
⚫ Big DMU - depending on cost and risk
⚫ Many people involved
⚫ Slower process
⚫ Customer will gather and weigh lots of
information
⚫ Anyone can win
⚫Performance matters a lot (not just price)
[Major Types of Buying Situations]
system selling
Systems selling is buying a complete solution to a problem from a single
seller.
Solutions selling: UPS not only delivers packages for online retailer
Overstock.com, it also manages much of Overstock’s complex order
and returns process in an efficient, customer-pleasing way.
Participants in the Business Buying Process
buying center
Buying center
All the individuals and units that play a role in the purchase decision-making process.
Participants in the Business Buying Process
Users
Users
Members of the buying organization who will actually use the purchased product or service.
Participants in the Business Buying Process
Influencers
Influencers
People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
Participants in the Business Buying Process
Buyers
Buyers
People in an organization’s buying center who make an actual purchase.
Participants in the Business Buying Process
Deciders
Deciders
People in an organization’s buying center who have formal or informal power to select or approve the final suppliers.
