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Marketing Chapter 11 - Business Buying Behaviour - Coggle Diagram
Marketing Chapter 11 - Business Buying Behaviour
"the buying behaviour of organisations that buy goods and services for use in the production of other products and services that are sold, rented or supplied to others"
characteristics of business markets that differ from consumer markets
nature of the buying unit
more buyers
professional purchasing
market structure and demand
derived demand
demand for business goods is derived from demand of consumer goods
if the demand for these consumer goods reduces, so will the demand for all the business goods entering their production
marketer must closely monitor buying patterns of the ultimate consumers
inelastic demand
demand is especially inelastic in the short term since producers cannot make quick changes in their production methods
fluctuating demand
more volatile than consumer goods and services
fewer but larger buyers
types of decisions and the decision process
close supplier - customer relationship
suppliers are frequently expected to customize their offerings to business needs
b2b relationships are more dependent on eachother
business buyers usually face more complex buying decisions
business buying process is more formalised
major types of buying situations
straight rebuy
business buying situation in which the buyer routinely orders something without any modifications
modified rebuy
business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
new buy
business buying situation in which the buyer purchases a product or service for the first time
DMU
"all those individuals and units that play a role in the purchase decision-making process"
buyer
make actual purchase
deciders
have a formal or informal power to select or approve of the final suppliers
influencers
affect the buying decision
engineers, researchers, product managers
gatekeepers
control the flow of information to others
administrative assistant
users
those who will use the product when it is received
office staff
initiator
any buying centre care member who is the first to determine that a need exists
major influences on business buyers
environmental factors
economic developments
supply conditions
technological change
political and regulatory developments
culture and customs
organisational factors
objectives
policies
procedures
organisational structure
systems
interpersonal factors
authority
status
empathy
persuasiveness
individual factors
age
income
education
job position
personality
risk attitudes
the business buying process
problem recognition
general need description
product specification
supplier search
proposal solicitation
supplier selection
order routine specification
performance review
e-procurement
the situation of purchasing through electronic connections between buyers and sellers, usually online