Org. Buying Behaviour

Question 1

What are the functional areas frequently involved in a purchasing decision?

Answer 1

Marketing - Create competitive advantage through buying acts
Production - Delivery and reliability of purchases
Technical development - Generate idea for specifications
R&D - Define technological requirements
Strategic staff - Evaluate decisions on a company level
Top management - Establish guidelines for all buying decisions
Buying - Identify and evaluate sellers, develop buying routines

Question 2

Who are included in the decision making process?

Answer 2

Various departments, but the department most involved often reflects the industry. Finance is usually the second most involved.

Question 3

Who are the buying center participants?

Answer 3

Initiator, Buyer(bonus and savings), Decider(employee and investor interests), Influencer (reputation and CEO satisfaction), Gatekeeper(power to decide), User (saving effort)

Question 4

Types of buying processes?

Answer 4

• Anticipation or recognition of a problem
• Determination of characteristics and quantity of needed items
• Description of characteristics and qantity of needed items
• Search for and qualification of potential sources
• Acquisition and analysis of proposals
• Selection of supplier(s)
• Selection of an order routine
• Performance feedback and evaluation

Question 5

In what three dimensions can buying situations be differentiated in?

Answer 5

1. Newness
2. Information requirements
3. Importance of alternatives
   These dimensions determine how complex the situation is and who will be a member of a buying center.

Question 6

How does the infomation amout a company has affect a buying situation?

Answer 6

The “risk continuum” ranges from low to high and determines the buying centre structure accordingly