Chapter 7

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Chapter 7

  1. 1. Chapter 7:Business andOrganizationalCustomers andTheir Buying Behavior For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  2. 2. Chapter 7 Objectives When you finish this chapter, you should 1. Know who the business and 6. Know about the number and organizational customers are. distribution of manufacturers 2. See why multiple influence is and why they are an common in business and important customer group. organizational purchase 7. Know how buying by service decisions. firms, retailers, wholesalers, 3. Understand the problem- and governments is similar to solving behavior of —and different from— organizational buyers. buying by manufacturers. 4. Know the basic methods used 8. Understand the important new in organizational buying. terms. 5. Understand the different types of buyer-seller relationships and their benefits and limitations. For use only with Perreault and McCarthy texts.7-2 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  3. 3. Different Types of Customers Manufacturers Farms, mines, etc. Producers Financial Institutions Other providers Wholesalers Middlemen All business and Retailers organizational customers Federal Governments State and Local National Nonprofits LocalExhibit 7-1 For use only with Perreault and McCarthy texts.7-3 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  4. 4. Buying Centers Buyers Users Buying Influencers Center Gatekeepers DecidersExhibit 7-2 For use only with Perreault and McCarthy texts.7-4 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  5. 5. Overlapping Needs Risk Innovation Job security Survival Comfort Customer satisfaction Overlap Individual’s in Company’s Needs Needs Needs Career advancement Growth Money-rewards Profit Other needs Other needsExhibit 7-3 For use only with Perreault and McCarthy texts.7-5 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  6. 6. Organizational Buying Processes Type of Process Characteristics New-Task Modified Straight Buying Rebuy Rebuy Time Required Much Medium Little Multiple Influences Much Some Little Review of Suppliers Much Some None Information Needed Much Some LittleExhibit 7-4 For use only with Perreault and McCarthy texts.7-6 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  7. 7. Basic Methods in Organizational Buying Inspection Sampling Basic Methods Description Negotiated Contracts For use only with Perreault and McCarthy texts.7-7 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  8. 8. Buyer-Seller Relationships Information sharing Linkages Finance R&D Quality Cooperation Quality R&D Salesperson Purchasing manager Supplier Relationship Customer Marketing Accounting Production Accounting Engineering Production Legal bondsExhibit 7-6 Adaptations For use only with Perreault and McCarthy texts.7-8 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  9. 9. Types of Organizational Buyers Focus: Manufacturers Grouped by Industry Focus: Service Producers Close to Customers Retailers & Focus: Wholesalers Buying for Targets Focus: Governments Bids & Regulations For use only with Perreault and McCarthy texts.7-9 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
  10. 10. Key Terms Business and Organizational Inspection Buying Customers Sampling Buying ISO 9000 Description Buying Purchasing Managers Competitive Bids Multiple Buying Influence Negotiated Contract Buying Buying Center Just-in-Time Delivery Vendor Analysis Reciprocity New-Task Buying NAICS Codes Straight Rebuy Open to Buy Modified Rebuy Resident Buyers Requisition Foreign Corrupt Practices Act For use only with Perreault and McCarthy texts.7-10 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill

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