Kapitel 2: Organizational Procurement (Customer) Flashcards
What is a buying center and what the the different types?
Buying center: is a group of indiviuals who participate in an organizational purchase decision, in most cases it is an informal group, i.e. not institutionalized
- several people can have the same role, but one person can also have multiplle roles
Types: Buyer, User, Decider, Influencer, Gatekeeper
Buying center roles: (Customer of BASF)
- Buyer: has the formal authority and responsibility to select the supplier and to negotiate the terms of contract
- User: Actually uses the product or service
- Decider: Has the formal and informal power to select or approve a supplier
- Influencer: Opinion leader who affects the buying decision, usually by helping defne the specifications
- Gatekeeper: Controls the flow of information in the buying center and, thus, influence the purchasing decision
Which role(s)/business function of a buying center has the highest influence at each phases of the procurement process?
-
Need recognition:
Manufacturing (user), R&D (influencer) -
Definition of specifications:’
R&D (Influencer), Manufacturing (user) -
Supplier research:
Purchasing dep. (Buyer), little R&D (influencer) -
Evaluation of supplier:
R&D (influencer), Purchasing dept. (Buyer) -
Supplier selection:
Purchasing (buyer), Management (decider)
What are promoters and opponents in the promoter-opponent model?
Promoters are members of the buying center, who initiate a procurement process and support this process actively and actuely until closure (buying decision)
Opponents: are members of the buying cetner, who impede or try to prevent the procurement process
What are the different types of promoters/opponents in the model?
Authority:
influencesprice the procurement process
through: high hierarchical position
- Contributes to
overcome hierarchy barriers
Expertise:
- influeces the procurement process
through: Object-specific expertise
- Contributes to
overcome object-specific barriers
Process:
- influeces the procurement process
through: Specific knowledge of the organizational structure
- Contributes to
overcome organizational & administrative barriers
Relationship:
- influeces the procurement process
through: social and network skills
- Contributes to
overcome relationship barriers
Promoter-opponent model types: further information
Similar to the buying center, the different typpes of promoters/opponents can be performed by one person or several different people
–>A team consisting of an authority promoter and an expertise promoter (eventually combined with a process and/or relationship promoter) is crucial for an efficient procurement organisation
What is the “Buygrid framework developed by Robinson/Faris &Wind?
= is a generic conceptual model for the procurement process of organisations
What are the 3 different buying situations in Buygrid framework?
- New taks: organization is purchasing a produuct/service for the first time, most complex buy class
- Modified Rebuy: organisation has purchased before, but now requires some changes/modifications, may seek new suppliers
- Straight rebuy: organization has purchased before, and simply reorders the product/service without significant changes
What are the 3 dimensions considered for each of the three buying situations in the Buygrid framework?
1.Novelty of the problem: = level of uniqueness or complexity with specific issue
- high –>new task
- medium –>modified rebuy
- low –>straight rebuy
2.Extent of information needs: amount and depth of information required by the organization
- maximum –>new task
- limited –>Modified rebuy
- minimum –>straight rebuy
3.Consideration of new alternatives: extent to which exploring differnet products, suppliers etc.
- important –>new task
- limited –>modified rebuy
- straight rebuy –>none
What does the Model of industrial buyer behavior?
The Sheth Model of Industrial Buyer Behavior describes the decision-making process of organizational buyers
What are the psychological determinants of the organisational buying process (Shetth model Industrial buyer)?
psychological determinants for decision making?
- Role behavior
- Background of individuals
- Expecations of individuals
-
What are the communcation actions of supplier in the Industrial buyer model by Sheth?
Communication of the supplier:
- Exhibitions and trade shows
- Direct Mail
- Journal releases
- Conferences
- Trade News
What are factors influencing the industrial buying process according to the Sheth model?
Industrial buying process:
- time pressure
- perceived risk
- organization size
- Degree of centralization
