week ten - organisational buyer behaviour Flashcards
what are organisational buyers
people who purchases goods and services on behalf of companies for use in the process of manufacturing, distribution or resale
what is organisational buying
the decision making process by which organisations establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers
what do organisational buyers do compared to consumers
- involve more pople
- use precise secifications
- impulse buying is rare
- decisions are often risky
- money volume is substantial
- emphasises selling
what is the difference between organisational buyers compared to final consumers with market structure and demand
- geographical concentration
- fewer, larger buyers
- inelastic demand
- fluctuating demand
what is the difference between organisational buyers compared to final consumers with buyer characteristics
- group involvement
- technical knowledge
- rational motivations
what is the difference between organisational buyers compared to final consumers with the decision processes and buying patterns
- formality
- complexity
- lengthy negotiation
multiple suppliers - large orders
- infrequent purchase
- direct buying
- reciprocity
- importance of service
what are the environmental factors that influence organisational buying behaviour
- physical
- technological
- economic
- political
- legal
- ethical
- culture
what are the organisational factors that influence organisational buying behaviour
- tasks
- structure
- technology
- people
what are the interpersonal factors that influence organisational buying behaviour
- the buying center
- buying-center roles
power relationships
what are the individual factors that influence organisational buying behaviour
- motivation
- perception
- learning
how do organisational buyers operate
check slides 10
what is the organisational buyer decision process
- problem recognition
- need description
- product specification
- vendor search
- proposal request
- vendor selection
- purchase routine selection
- post-purchase evaluation
what is purchasing orientation
the overall philosophy that guide managers who make purchase-related decisions and delineates their span and influence
what is the buying orientation
- best deal in terms of price, quality and availability
- maximise power over suppliers
- avoid risk where possible
what is procurement orientation
- improving quality
- reducing total costs
- cooperating with suppliers
