B2B chapter 19
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B2B chapter 19
decision making units
individuals in an organization who participate in making a purchase decision
decision making units. consist of individuals from various areas. complex in hospital market.
size of decision making unit
depends on size of organization, stage of product in life cycle, functions influencing the purchase decision
stages of product life cycle
introduction, growth, maturity
new task, modified rebuy, straight rebuy
new task situation
when a company approaches a project that is completely new.
complicated, but a business has already done it (renovations)
corporations are buying repeats (light bulbs), best price and electronic ordering
steps in organizational decision process
problem recognition, information search, evaluation and selection, purchase and decision implementation, usage and post-purchase evaluation
who is involved in the stages of decision process most
the head of the department
formal information search
site visits to evaluate a potential vendor, lab tests of a new product or prototype, investigation of possible specification
informal information search
discuss with sales representative, attend trade shows, read industry specific journals
later, in 90 days, must agree to terms and conditions
internets role in decision process
research stage, consideration stage, choice stage. used more than trade publications/traditional media
lifestyle. corporate culture, companies vary in risk, innovation, and change.
external factors in influencing organizational culture: firmographics
size, activities and objectives, location, industry category, organizational composition, macrosegmentation
external factors in influencing organizational culture: culture/government
variations in values and behaviors across cultures affect organizations/individuals. in USA, Japan, and most of Europe, bribery is illegal.
external factors in influencing organizational culture: reference groups
lead users are innovative organizations that derive success from leading change. reference group infrastructure pulls it down to lower firms. market push to lead users then market pull down.
internal factors in influencing organizational culture: organizational value
nonprofit organizations have different views than JC Penny
internal factors in influencing organizational culture: perception
how businesses view companies. hard to change. need to follow up after sale.
internal factors in influencing organizational culture: learning
if a consumer has a good experience, bond is strong.
internal factors in influencing organizational culture: motives/emotions
not as important as with consumers, but you are still dealing with people. it is their job.
involve single transactions, short term and few relational investments, lack of loyalty
long term, high relational investments, strong loyalty. sellers must adapt strategies for these different buyer types