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Lecture2:BuyerBehaviourinConsumerandOrganisationalMarkets

LectureObjectivesBuyerBehaviourConsumerDecisionMakingProcessCharacteristicsofOrganisationalBuying2UnderstandingcustomersHowdotheybuy?Whataretheirchoicecriteria?CustomersWhoisimportant?Wheredotheybuy?Whendotheybuy?TheConsumerDecision-MakingProcessNeedrecognition/problemawareness9InformationsearchEvaluationOfalternativesPurchasePost-purchaseevaluationofalternativesChoiceCriteriaUsedWhenEvaluatingAlternatives5Technical-ReliabilityDurabilityPerformanceStyle/looksComfortDeliveryConvenienceTasteEconomic-PriceValueformoneyRunningcostsResidualvalueLifestylecostsSocial-StatusSocialbelongingConventionFashionPersonal-Self-imageMoralsEmotions8DeterminantsoftheextentofproblemsolvingSelf-imagePerceivedriskSocialfactorsHedonismDifferentiationandnumberofalternativesLevelofinvolvementTimepressureExtentofproblemsolvingTheconsumerdecision-makingprocessandlevelofpurchaseinvolvement10StageLowInvolvementHighInvolvementNeedrecognitionproblemawarenessMinorMajorpersonalityimportantInformationsearchLimitedsearchExtensivesearchEvaluationofalternativesandthepurchaseFewalternativesevaluatedonfewchoicecriteriaManyalternativesevaluatedonmanychoicecriteriaPost-purchaseevaluationofthedecisionLimitedevaluationmediasearchExtensiveevaluationincludingmediasearchSonyTheimportanceofemotionandtherelationshipbetweenfeelingsandrationalisationsishighlightedinthisSonyad.4

Orange

Marketersusecolourtoconveymeaninginthisadvertisement1112FordKaMarketersusecolourtoconveymeaninginthisadvertise-mentConsumerorOrganisationalProducts

WhywastheproductPurchased?

ForpersonalorhouseholduseForuseintheoperationofabusinessororganisation.TomanufactureotherproductsForresaletoothersORGANISATIONAL

PRODUCTCONSUMERPRODUCT2SomeExamplesofOrganisationalBuyingPapercupsbyMcDonald'sComputerchipsbyToshibaConcretebyLocalAuthoritiesOilbyElectricityGeneratorsFertiliserbyFarmersAccountancyservicesbyLtd..CompaniesTV’sbyCometorDixons34CharacteristicsofOrganisationalBuyingDeriveddemandNegotiationsRisksReciprocalbuyingNatureandsizeofcustomersComplexityofbuyingEconomicandtechnicalchoicecriteriaBuyingtospecificrequirementsOrganisationalPurchasesTheBuyingCentreBuyerDecider(DecisionMaker)UserGatekeeperInfluencer5Usersactuallyusetheproduct.Theymaybetheonewhoinitiatesthepurchaseprocessandmaydeveloptheproductspecification.Influencers

supplyinformationandadvice.Outsiderssuchasconsultantssometimesperformtherole.Gatekeeperscontroltheflowofinformationtothebuyingcentre.PurchasingdepartmentStafffrequentlyfilltherolebutitcouldbeanymemberoftheorganisation.Buyerschoosesuppliersandnegotiatepurchasetermsoftenreducingtheactualpurchasetoaclericaltask.Deciders(DecisionMakers)

havetheauthoritytoapprovethepurchase.6Buyphases:theorganizationaldecision-makingprocessRecognitionofaproblem(need)DeterminationofspecificationandquantityofneededitemSearchforandqualificationofpotentialsourcesAcquisitionandanalysisofproposalsEvaluationofproposalsandselectionofsupplier(s)SelectionofanorderroutinePerformancefeedbackandevaluation8VodaphoneVodaphonerecognisetheimportanceofeconomicchoicecriteriainorganisationalbuying9Influencesonorganizationalpurchasingbehaviourstraight

re-buymodifiedre-buynewtaskBuyclassOrganizationalbuyerproductconstituentsproductfacilitiesMROsProducttypeImportanceofpurchaseNewTaskBuyingTheorganisationmakesaninitialpurchaseofanitemtobeusedtoperformanewjobortosolveanewproblem.Oftenthisinvolvesdevelopmentofspecificationsforproductsandsuppliersaswellasproceduresforfuturepurchases.Highinformationrequirementfrommanysuppliers.Example:newITfacility11ModifiedRebuyWhenanewtaskpurchaseischangedonrepeatpurchases.Thebuyermayrequirefasterdeliverylowerpricesormodifiedspecifications.Regularsuppliersbecomemorecompetitiveandnewsuppliersmaybeincludedintheselection.Moderateamountsofinformationarerequired.Example:upgradingofficesoftware12StraightRebuyThebuyerpurchasesthesameproductsagainroutinelyunderapproximatelythesametermsofsale.Suppliersarefamiliar,haveprovidedsatisfactoryserviceinthepastandmayevenhavesetupautomaticre-orderingsystems.Littleinformationisrequired.Example:re-orderingphotocopyingpaper13BuyingSituationImplicationsTimetakenfordecisionNoofpeopleinvolvedinbuyingcentreStraightRebuyNewTa

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