ORGANISATIONAL: for use in the operation of a
business/organisation, to manufacture other products,
for resale to others
What is consumer behaviour?
The study of how individuals, groups, and organizations select, buy,
use, and dispose of goods, services, ideas, or experiences to
satisfy their needs or wants.
How consumers buy
5. Post-purchase evaluation of
alternatives
4. Purchase
3. Evaluation of alternatives
2. Information search
1. Need recognition/problem awareness
Nota:
Internal stimulus: normal needs, hunger
External stimulus: love new car - triggers buying one
Information Search
Total set
Awareness set
Consideration set
Choice set
Evaluation of Alternatives
Economic
Nota:
Price
Value for money
Running costs
Residual value
Life-style costs
Organisational buying decision
making process where formal
organisations establish need for
purchased products & services &
identify, evaluate & choose among
alternative brands & suppliers
Examples: paper cups by McDonald's,
computer chips by Toshiba
Characteristics of Organisational Buying
Complexity of buying
Buying to specific requirements
Reciprocal buying
Negotiations
Derived demand
Nature and size of customers
Economic and technical
choice criteria
Risks
Buying SItuations
3. New task
2. Modified rebuy
1. Straight rebuy
Decision-making Unit
Gatekeepers
Nota:
Control the flow
of information to the
buying centre. Purchasing
department Staff frequently fill
the role but it could be any
member of the
organization
Influencers
Nota:
Supply information
and advice. Outsiders
such as consultants
sometimes perform
the role
Initiators
Nota:
Begin the purchase process
Buyers
Nota:
Have the authority
to execute the
contractual
arrangements
Users
Nota:
Actually use the
product. They may be
the one who initiates
the purchase process and
may develop the product
specification.
Buy Phases
1. Recognition of a problem
2. Determination of
specification and quantity of
needed item
3. Search for and qualification
of potential sources
4. Acquisition and analysis of
proposals
5. Evaluation of proposals and
selection of supplier(s)