Consumer

Purchasing Management how is purchasing regarded in the firm? where is purchasing performed one department - buying clout individual units - better match of needs
- what kinds of contracts with suppliers? short-term vs. long-term when is purchasing done? just in time vs. inventory build-up

Just In Time Purchasing & JITII search for high quality suppliers frequent deliveries - as needed location close to buyer communicate needs via shared MIS buy only from single or dual source
- long term contract reduction of costs & inefficiencies buyer and seller connected in early stages close relationships

Do buyers know sellers? special relationship
Do people exercise control of purchasing decision as a? show of power a reward or punishment
Group dynamics play a role

Demographics of Buyer age, sex, ethnicity

psychological factors (Buying Styles) risk intuitive vs. systematic (technical) thinking

Emotions also play a role in business buying. Volvo stresses that the trucks’ benefits will make “drivers a lot more possessive”.

Loyal Buyer - loyal to one or two source over the years
Opportunistic - selects vendors who will further interests and drives a hard bargain
Creative - buyer tells the seller what s/he wants in product, service prices
Advertising - attempts to obtain advertising money with the deal
Chiseler - constantly negotiates prices
Nuts and Bolts - looks for the best value

Channel-Offering Components

Cooperative Advertising
Stockless Purchasing
Automatic Reorder
Advertising Aids
Special Prices
Return and Exchange Privileges
Allowances for Markdowns
Sponsorship of in-store demonstrations/promotions

Business Buying on the Internet
E-procurement is growing rapidly.
Reverse auctions account for much of the online purchasing activity.
E-procurement offers many benefits: Access to new suppliers Lower purchasing costs Quicker order processing and delivery