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THE CONSUMER
BEHAVIOUR
Marketing
Motivation
Perception
a. Selective Exposure
b. Selective Attention
c. Selective Comprehension
d. Selective Retention
Learning
Attitudes
a. Family Influences
b. Peer group influences
c. Information
d. Experience
e. Personality --- Lifestyle
SOCIAL INFLUENCES
Personal Influence
Reference Groups
The Family
Social Class
Culture
Activity:
Prepare a list of five products purchased by your
family indicate who is the information gatherer,
the influence, the decision maker, the purchaser
and the user
CHAPTER
THREE
The Buying Behaviour of Organizational Markets
INTRODUCTION
1.
2.
3.
4.
INDUSTRIAL MARKET
Organizations that require goods and services for
the purpose of producing goods or services are
called industrial markets. The production output
of the industrial firms are sold for profit
e.g. Textile Firms Chemicals
Producers of Vegetable Hotels and
Restaurants
Publishers Universities and Colleges
RESELLER MARKETS
Are organizations that buy goods and services
which they later sell at a profit. Wholesalers and
retailers of drugs will qualify as the reseller of
drug manufacturing companies.
e.g. Mercury Drug Unilab
Most farmers sell their produce to persons who
later sell them to consumers. These middlemen
are the most visible forms of reseller market.
GOVERNMENT MARKETS
Government agencies that buy products and services
for use in the production of public goods and services
are referred to as government markets These
include the national, regional, provincial, and
municipal governments.
Examples of government markets are the following:
1. NFA buys palay from farmers
2. State Universities and Public Schools buy books and
school supplies from dealers or manufacturers
3. The AFP uniforms and transport equipment
NGO
Are nongovernmental organizations that serve
their customers but do not have profits as
organizational goal.
E.g. Girl Scouts, Red Cross, Knight Columbus,
Saint Nicholas Parish etc.
Characteristic
Organizational
Market
Consumer Market
YES
NO
Close
Supplier/Customer
Relationship
Geographical
Concentration of
Market
Derived Demand
YES
NO
YES
NO
YES
NO
Large Buyers
YES
NO
Inelastic Demand
YES
NO
Fluctuating Demand
YES
NO
Professional Purchasing
YES
NO
Few Buyers
ORGANIZATIONAL BUYING
AND ITS CHARACTERISTICS
1.
2.
3.
4.
5.
6.
7.
CONT...
Demand the demand for products and services
as required by organizations are derived from the
demand for consumer products and services
Potential Buyers firms that sell to
organizations have to deal with only a few
customers.
Buying Objectives organizations buy for the
purpose of making profits and this is done
through increasing sales or reducing costs.
CONT...
a.
b.
c.
d.
e.
f.
CONT...
PARTICIPANTS IN ORGANIZATIONAL
BUYING
1.
2.
3.
4.
5.
6.
PURCHASE DECISION-MAKING
PROCESS IN ORGANIZATIONS
1.
2.
3.
4.
5.
RECOGNITION OF A PROBLEM OR
NEED
FACTORS TO CONSIDER
THE PURCHASE
To achieve efficiency organizations prefer to
routinize their purchases, most often they will be
going through BLANKET PURCHASE ORDER
which is an agreement where the supplier
promises to resupply the buyer as needed on
agreed price and terms over a specified period of
time.
The Blanket Purchase order shuts other
suppliers until buyer is no longer satisfied with it
relationships with current supplier.
WHAT INFLUENCES
ORGANIZATIONAL BUYERS
Economic such as price, product, quality and
service
Personal such as favours, attention and risk
avoidance.
Specifically influences on organizational buyers
may be classified as follows:
1. Environmental Factors politics, economics &
competition
2. Organizational Factors policies & procedures
3. Interpersonal factors members
4. Individual Factors - personal