Organizational Buying

Behavior

Consumer vs.
Organizational buying
behavior

Decisions made by consumers are quite simple

Organizational buying processes are more
complicated, there are several phases and steps
Different buying behavior for different products
and target groups
Simple consumer goods like food and beverages
are bought very spontaneously influenced by
advertising and product presentation
For premium consumer goods (expensive
clothes, computers) buying behavior is getting
more rational comparison
Private investment goods price bargaining

B2B products
organizational procurement
starts

More than one person involved

Buying process follows certain
rules
Price comparison,
standardisation, tenders )

B2B systems
involve more capabilities and
greater workloads
From the buyers and the
suppliers side decision has
more extensive consequences

B2B facilities
Industrial plants
Manufacturing installations
Office buildings

2. General
Description
of Need

3. Product
Specifications

4. Supplier
Search

Organizational
Buying Process

5. Acquisition
and Analysis
of Proposals

6. Supplier
Selection

7. Selection
of
Order Routine

8. Performance
Review

1. Problem
Recognition

Three Buying Situations

1. New task
2. Modified rebuy
3. Straight rebuy

Main types of buying

situations in B2B
Straigtht rebuy routine decision, repetitive
process (energy, office supplies, raw materials,
wood, cigarettes), component suppliers for the
automotive industry little or no new information
Modified rebuy more complicated but less
sophisticated: cars, trucks, computers, consulting
modified rebuys are often treated too uncautious
New task calls for thorough research industrial
plant highest level of uncertainty. Strategic new
tasks are of extreme strategic and financial
importance (aircrafts, military equipment,
infrastructure) re-evaluation of alternatives and
search for new information and new alternatives

Three Buying Situations

1. New Task

New taskthe problem or need is

totally different from previous
experiences.
Significant amount of information is
required.
Buyers operate in the extensive problem
solving stage.

Buyers lack well defined criteria.

Lack strong predispositions toward a solution.

Three Buying Situations

2. Modified Rebuy

Modified rebuydecision makers

feel there are benefits to be derived
by reevaluating alternatives.
Most likely to occur when displeased with
the performance of current supplier.
Buyers operate in the limited problem
solving stage.

Buyers have well defined criteria.

Three Buying Situations

3. Straight rebuy

Straight rebuythe problem or need

is a recurring or continuing situation.
Buyers have experience in the area in
question.
Require little or no new information.
Buyers operate in the routine problem
solving stage.

Forces Influencing Organizational Buying

Behavior
A projected change in
business conditions
can drastically alter
buying plan.

Organizational
Buying
Behavior

Environmental
Forces

Economic Outlook:
Domestic & Global
Pace of Technological
Change
Global Trade Relations

Organizational
Forces

Goals, Objectives, and

Strategies
Organizational Position
of Purchasing

Group
Forces

Roles, relative
influence, and patterns
of interaction of buying
decision participants

Individual
Forces

Job function, past

experience, and buying
motives of individual
decision participants