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,Lecture 2: Buyer Behaviour in Consumer and Organisational Markets Lecture Objectives,Buyer Behaviour Consumer Decision Making Process Characteristics of Organisational Buying,2,Understanding customers,How do they buy?,What are their choice criteria?,Customers,Who is important?,Where do they buy?,When do they buy?,The Consumer Decision-Making Process,Need recognition/problem awareness,9,Choice Criteria Used When Evaluating Alternatives,5,8,Determinants of the extent of problem solving,The consumer decision-making process and level of purchase involvement,10,Sony,The importance of emotion and the relationship between feelings and rationalisations is highlighted in this Sony ad.,4,Orange,Marketers use colour to convey meaning in this advertisement,11,12,Ford Ka,Marketers use colour to convey meaning in this advertise-ment,Consumer or Organisational Products Why was the product Purchased ?,For personal or household use,For use in the operation of a business or organisation. To manufacture other products For resale to others,ORGANISATIONAL PRODUCT,CONSUMER PRODUCT,2,Some Examples of Organisational Buying,Paper cups by McDonalds Computer chips by Toshiba Concrete by Local Authorities Oil by Electricity Generators Fertiliser by Farmers Accountancy services by Ltd Companies TVs by Comet or Dixons,3,4,Characteristics of Organisational Buying,Derived demand,Negotiations,Risks,Reciprocal buying,Nature and size of customers,Complexity of buying,Economic and technical choice criteria,Buying to specific requirements,Organisational Purchases,The Buying Centre,Buyer,Decider (Decision Maker),User,Gatekeeper,Influencer,5,Users actually use the product. They may be the one who initiates the purchase process and may develop the product specification.,Influencers supply information and advice. Outsiders such as consultants sometimes perform the role.,Gatekeepers control the flow of information to the buying centre. Purchasing department Staff frequently fill the role but it could be any member of the organisation.,Buyers choose suppliers and negotiate purchase terms often reducing the actual purchase to a clerical task.,Deciders (Decision Makers) have the authority to approve the purchase.,6,Buy phases: the organizational decision-making process,Recognition of a problem (need),Determination of specification and quantity of needed item,Search for and qualification of potential sources,Acquisition and analysis of proposals,Evaluation of proposals and selection of supplier(s),Selection of an order routine,Performance feedback and evaluation,8,Vodaphone,Vodaphone recognise the importance of economic choice criteria in organisational buying,9,Influences on organizational purchasing behaviour,straight re-buy modified re-buy new task,Buy class,Organizational buyer,product constituents product facilities MROs,Product type,Importance of purchase,New Task Buying,The organisation makes an initial purchase of an item to be used to perform a new job or to solve a new problem. Often this involves development of specifications for products and suppliers as well as procedures for future purchases. High information requirement from many suppliers. Example: new IT facility,11,Modified Rebuy,When a new task purchase is changed on repeat purchases. The buyer may require faster delivery lower prices or modified specifications. Regular suppliers become more competitive and new suppliers may be included in the selection. Moderate amounts of information are required. Example: upgrading office software,12,Straight Rebuy,The buyer purchases the same products again routinely under approximately the same terms of sale. Suppliers are familiar, have provided satisfactory service in the past and may even have set up automatic re-ordering systems. Little information is required. Example: re-ordering photocopying paper,13,Buying Situation Implications,Time taken for decision,No of people involved in buying centre,Straight Rebuy,New Task,Modified Rebuy,10,14,Reverse mar
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