Organisational Buyer Behaviour
Organisational Buyer Behaviour
3 elements: * Structure – the who factor, who participates in the decision making process and their particular roles. * Process – the how factor, the pattern of information getting, analysis, evaluation and decision making which takes place as the purchasing organisation moves towards a decisiom * Content – the what factor, the choice criteria used at different stages of the process and by different members of Decision Making Unit DMU.
Structure of DMU: * Initiators, those who begin the purchase process * Users, those who actually use the product * Deciders, those who have the authority to select the supplier method/model. * Influencers, those who provide information and add decision criteria throughout the process. * Buyers, those who have authority to execute the contractual agreements * Gatekeepers, those who control the flow of information e.g secretaries.
The salespersons task is to identify and reach the key members on order to convince them of the products worth
Decision making Process for n industrial product:
1.Recognition of a problem (need). These can be recognised through internal or external factors. Internal recognition – active behaviour (internat/active) internally recognised but not acted upon (internal/passive).
2. Determination of characteristics, specifications and quantity of needed item. DMU will draw up a description of what is required. Salesperson can influence the specifications which gives their company an advantage in later stages.
3. search for and qualification of potential sources. The cheaper and less important item the more information the buyer has, the less search takes place.
4. Accuisition and analysis of proposals. Number of companies are now found which have expertise and general reputation. They are considered and will be called for analysis of the proposals.
5. Evaluation of proposals and selection of suppliers. Each proposal is evaluated against
3 elements: * Structure – the who factor, who participates in the decision making process and their particular roles. * Process – the how factor, the pattern of information getting, analysis, evaluation and decision making which takes place as the purchasing organisation moves towards a decisiom * Content – the what factor, the choice criteria used at different stages of the process and by different members of Decision Making Unit DMU.
Structure of DMU: * Initiators, those who begin the purchase process * Users, those who actually use the product * Deciders, those who have the authority to select the supplier method/model. * Influencers, those who provide information and add decision criteria throughout the process. * Buyers, those who have authority to execute the contractual agreements * Gatekeepers, those who control the flow of information e.g secretaries.
The salespersons task is to identify and reach the key members on order to convince them of the products worth
Decision making Process for n industrial product:
1.Recognition of a problem (need). These can be recognised through internal or external factors. Internal recognition – active behaviour (internat/active) internally recognised but not acted upon (internal/passive).
2. Determination of characteristics, specifications and quantity of needed item. DMU will draw up a description of what is required. Salesperson can influence the specifications which gives their company an advantage in later stages.
3. search for and qualification of potential sources. The cheaper and less important item the more information the buyer has, the less search takes place.
4. Accuisition and analysis of proposals. Number of companies are now found which have expertise and general reputation. They are considered and will be called for analysis of the proposals.
5. Evaluation of proposals and selection of suppliers. Each proposal is evaluated against