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Chapter 3 Organisational Buying & Buying Behavior www.dinhtienminh.net DINH Tien Minh University of Economics of HCMC Faculty of Commerce – Tourism – Marketing Objectives  Understand o

Chapter 3 Organisational Buying &

Buying Behavior

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DINH Tien Minh University of Economics of HCMC Faculty of Commerce – Tourism – Marketing

Objectives

 Understand organisational buying objectives.

 Gain knowledge organisational buying process

including the types of buying situation.

 Identify the members of decision making unit.

 Understand some of models of organisational

buying behavior.

3.1 Purchasing Objectives

3.2 Organisational Buying Process

3.3 Types of Purchase or Buying Situations

3.4 The Buying Center

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3.5 Models of Organisational Buying Behavior

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3.1 Purchasing Objectives

 Buying the right item in the right quantity , at

the right price , for delivery at the right time

and place

 What’s right for each dimension?

 Delivery/ Availability

 Product quality

 Lowest price

 Services

 Supplier relationship

3.1 Purchasing Objectives (cont’)

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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 The firm and personal objectives.

 More complex than the consumer decision process

and takes place within formal organization’s budget,

cost, and profit considerations.

3.2 Organisational Buying Process

 Stage 1: Anticipate a problem/need and a

general solution

 Need to provide employees with a good cup of coffee

to enhance productivity.

 Stage 2: Determine the characteristics and

quantity of a needed good or service

 Offering a coffee system that brews one cup of coffee

at a time according to each employee’s preference.

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3.2 Organisational Buying Process (cont’)

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 Stage 3: Describe characteristics and the

quantity of a needed good or service

 Firms need a simple system for

brewing a good cup of coffee; quantity

requirements are easily correlated to the

number of coffee drinkers.

 Stage 4: Search for and qualify potential

sources

 Choice of supplier.

3.2 Organisational Buying Process (cont’)

 Stage 5: Acquire and Analyze proposals

 May involve competitive bidding, especially if the

buyer is the government or a public agency.

 Stage 6: Evaluate proposals and Select

suppliers

 Buyers choose proposal best suited to their needs.

 Final choice may involve trade-offs between feature

such as price, reliability, quality, and order accuracy.

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3.2 Organisational Buying Process (cont’)

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 Stage 7: Select an order routine

 Buyer and Vendor work out best way to process

future purchases.

 Stage 8: Obtain feedback and Evaluate

performance

 Buyers measure vendors’ performance.

 Larger firms are more likely to use formal evaluation

procedures.

 Some firms rely on outside organizations to gather

3.2 Organisational Buying Process (cont’)

3.3 Types of Purchase or Buying Situations

Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition.

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Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition.

3.3 Types of Purchase or Buying Situations

3.4 The Buying Center

3.5 Models of Organisational Buying Behavior

Nguồn: Adapted from Jagdish N Sheth, “A Model of Industrial Buying Behaviour”, Journal of Marketing, 37,

Oct, 1973, 50-56.

3.5 Models of Organisational Buying Behavior

DINH Tien Minh

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