1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 6: Business and Organizational Customers and Their Buying Behavior

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill When you finish this chapter, you should 6-2 Chapter 6 Objectives 1. Know who the business and organizational customers are. 2. See why multiple influence is common in business and organizational purchase decisions. 3. Understand the problem- solving behavior of organizational buyers. 4. Know the basic methods used in organizational buying. 5. Understand the different types of buyer-seller relationships and their benefits and limitations. 6. Know about the number and distribution of manufacturers and why they are an important customer group. 7. Know how buying by service firms, retailers, wholesalers, and governments is similar to —and different from— buying by manufacturers. 8. Understand the important new terms.

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill 6-3 Different Types of Customers Exhibit 6-1 All business and organizational customers Producers Middlemen Governments Nonprofits Manufacturers Farms, mines, etc. Financial Institutions Other providers National Local Federal State and Local Wholesalers Retailers

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Buying Centers Buying Center InfluencersUsers GatekeepersDeciders Buyers 6-4 Exhibit 6-2

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Innovation Survival Customer satisfaction Growth Profit Other needs Company’s Needs Overlap in Needs Individual’s Needs Risk Job security Comfort Career advancement Money-rewards Other needs 6-5 Overlapping Needs

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill LittleSomeMuch NoneSomeMuch LittleSomeMuch LittleMediumMuch Information Needed Review of Suppliers Multiple Influences Time Required Characteristics New-Task Buying Modified Rebuy Straight Rebuy Type of Process 6-6 Exhibit 6-3 Organizational Buying Processes

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Basic Methods Inspection Description Negotiated Contracts Sampling 6-7 Basic Methods in Organizational Buying

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Information sharing Linkages Cooperation Legal bonds Adaptations RelationshipSupplierCustomer Salesperson Quality R&D Accounting Marketing Production Purchasing manager Quality Finance R&D Production Accounting Engineering 6-8 Exhibit 6-5 Buyer-Seller Relationships

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service Producers Retailers & Wholesalers Governments Grouped by Industry Close to Customers Buying for Targets Bids & Regulations Focus: 6-9

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Inspection Buying Sampling Buying Description Buying Competitive Bids Negotiated Contract Buying Just-in-Time Delivery Reciprocity NAICS Codes Open to Buy Resident Buyers Foreign Corrupt Practices Act Business and Organizational Customers ISO 9000 Purchasing Managers Multiple Buying Influence Buying Center Vendor Analysis New-Task Buying Straight Rebuy Modified Rebuy Requisition 6-10 Key Terms