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BUSINESS BUYER BEHAVIOUR MODEL


BUSINESS BUYER BEHAVIOUR MODEL

The buying behavior of the organization that buys goods and services for the use in the production of other products and services.

BUSINESS BUYING PROCESS:

The decision process by which business buyers determine which products and services their organization  need to purchase and then find ,evaluate and choose among alternative suppliers and brands.

Business market:

Business market differ in many ways from consumer market .Major differences include market structure and demand ,the nature of buying unit, type of decision and decision   process involved.

Business buyer behavior:

It explains about how business buyer will respond to various marketing stimuli.

It explains about the actor and forces that stimulate the purchase decision.

Types of business buying situation:

1. Straight rebuy-reordering something without any modification.

2. Modified rebuy-buying a product by modifying product specifications, prices, terms, suppliers.

3. New task –buying situation in which a buyer purchase the new product for the first time.

Major participants in buying process:

  1. Users-members of the organization who uses the product. Usually initiate buying proposal and product specifications.

2. Influencers-often define specifications and provide information for evaluating alternatives .usually technical personnel will be involved.

3. Buyers-have formal authority to select supplier and arrange terms of purchase.

4. Deciders-have formal or informal power to approve final suppliers.

5. Gatekeepers-control the flow of information to others.

The major influencers in decision making process:

Environmental forces like –economic developments, supply conditions, technological change, political and regulatory developments, competitive developments, culture customs.

Organizational forces-objectives of the organization, policies, procedures, organizational structure, systems.

Interpersonal forces-authority, status, empathy, persuasiveness.

Individual –age, income, education job position, personality, risk attitude.

5. Buyers.



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