1. BUSINESS MARKETS & BUSINESS BUYER BEHAVIOR
Kotler, P. & Armstrong, G., 2006, Principles of Marketing, New Jersey: Pearson Education, Inc., Ch.6
Session 3
9/17/2011

2. CHARACTERISTICS OF BUSINESS MARKETS
Marketing Structure & Demand
Contain fewer but larger buyers
More geographically concentrated
Demand is derived from final consumer demand
Demand is more inelastic
Demand fluctuates more, and more quickly
Nature of the Buying Unit
Business purchases involves more buyers
Involves a more professional purchasing effort
Types of decisions & the Decision Process
Usually face more complex buying decisions
The decision process is more formalized
Buyers & sellers work more closely together & build close long-run relationships
Session 3
9/17/2011

3. DEFINITIONS
Business buyer behavior is the buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
Business buying process is the decision process by which business buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers and brands.
Session 3
9/17/2011

4. Model of Business Buyer Behavior
The Environment
Marketing
Stimuli:
Product
Price
Place
Promotion
Other Stimuli:
Economic
Technological
Political
Cultural
Competitive
The Buying
Organization
The buying
center
Buying decision
process
(Interpersonal and
individual influences)
(Organizational
Influences)
Buyer Responses
Product or
service choice
Supplier Choice
Order Quantities
Delivery terms
and times
Service terms
Payment
Session 3
9/17/2011

5. Major Influences on Business Buyer Behavior
Environmental
Economic
developments
Supply
Conditions
Technological
change
Political and regulatory
Competitive
Developments
Culture and customs
Organizational
Objectives
Policies
Procedures
Structure
Systems
Interpersonal
Authority
Status
Empathy
Persuasiveness
Individual
Age
Education
Job Position
Personality
Risk Attitudes
Buyers
Session 3
9/17/2011

6. BUYING CENTER
USERS are members of the organization who will use the products or services.
INFLUENCERS often help define specifications and also provide information for evaluating alternatives.
BUYERS are the people who make an actual purchase.
DECIDERS are people in the organization’s buying center who have formal or informal power to select or approve the final suppliers.
GATEKEEPERS are people in the organization’s buying center who control the flow of information to others.
Session 3
9/17/2011

7. The Business Buying Process
Stage 1. Problem Recognition
Stage 2. General Need Description
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
The Business Buying Process
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review
Session 3
9/17/2011

8. MAJOR TYPES OF BUYING SITUATIONS
A business buying situations in which the buyer routinely reorders something without any modifications
Straight Rebuy
A business buying situations in which the buyer wants to modify product specifications, prices, terms, or suppliers
Modified rebuy
A business buying situations in which the buyer purchases a product or service for the first time
New task
Session 3
9/17/2011