CHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENTLecture2:BuyerBehaviourinConsumerandOrganisationalMarketsLectureObjectivesBuyerBehaviourConsumerDecisionMakingProcessCharacteristicsofOrganisationalBuyingCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENT2UnderstandingcustomersHowdotheybuy?Whataretheirchoicecriteria?CustomersWhoisimportant?Wheredotheybuy?Whendotheybuy?CHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENTTheConsumerDecision-MakingProcessNeedrecognition/problemawareness9InformationsearchEvaluationOfalternativesPurchasePost-purchaseevaluationofalternativesCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENTChoiceCriteriaUsedWhenEvaluatingAlternatives5Technical-ReliabilityDurabilityPerformanceStyle/looksComfortDeliveryConvenienceTasteEconomic-PriceValueformoneyRunningcostsResidualvalueLifestylecostsSocial-StatusSocialbelongingConventionFashionPersonal-Self-imageMoralsEmotionsCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENT8DeterminantsoftheextentofproblemsolvingSelf-imagePerceivedriskSocialfactorsHedonismDifferentiationandnumberofalternativesLevelofinvolvementTimepressureExtentofproblemsolvingForpersonalorhouseholduseForuseintheoperationofabusinessororganisation.TomanufactureotherproductsForresaletoothersORGANISATIONALPRODUCTCONSUMERPRODUCT2PapercupsbyMcDonald'sComputerchipsbyToshibaConcretebyLocalAuthoritiesOilbyElectricityGeneratorsFertiliserbyFarmersAccountancyservicesbyLtd..CompaniesTV’sbyCometorDixons3CHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENT4CharacteristicsofOrganisationalBuyingDeriveddemandNegotiationsRisksReciprocalbuyingNatureandsizeofcustomersComplexityofbuyingEconomicandtechnicalchoicecriteriaBuyingtospecificrequirementsOrganisationalPurchasesCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENTTheBuyingCentreBuyerDecider(DecisionMaker)UserGatekeeperInfluencer5Usersactuallyusetheproduct.Theymaybetheonewhoinitiatesthepurchaseprocessandmaydeveloptheproductspecification.Influencerssupplyinformationandadvice.Outsiderssuchasconsultantssometimesperformtherole.Gatekeeperscontroltheflowofinformationtothebuyingcentre.PurchasingdepartmentStafffrequentlyfilltherolebutitcouldbeanymemberoftheorganisation.Buyerschoosesuppliersandnegotiatepurchasetermsoftenreducingtheactualpurchasetoaclericaltask.Deciders(DecisionMakers)havetheauthoritytoapprovethepurchase.(need)DeterminationofspecificationandquantityofneededitemSearchforandqualificationofpotentialsourcesAcquisitionandanalysisofproposalsEvaluationofproposalsandselectionofsupplier(s)SelectionofanorderroutinePerformancefeedbackandevaluationCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENT8VodaphoneVodaphonerecognisetheimportanceofeconomicchoicecriteriainorganisationalbuyingCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENT9Influencesonorganizationalpurchasingbehaviourstraightre-buymodifiedre-buynewtaskBuyclassOrganizationalbuyerproductconstituentsproductfacilitiesMROsProducttypeImportanceofpurchaseCHANAKAJAYAWARDHENABSP022MARKETINGMANAGEMENTNewTaskBuyingTheorganisationmakesaninitialpurchaseofanitemtobeusedtoperformanewjobortosolveanewproblem.Oftenthisinvolvesdevelopmentofspecificationsforproductsandsuppliersaswellasproceduresforfuturepurchases.Highinformationrequirementfrommanysuppliers.Example:newITfacility11