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ROBINSON, FARIS & WIND (1967) SUMMARY INFORMATION
BUYING CENTER
A buying center (also known as a decision making unit or DMU), in marketing, procurement, and
organizational studies, is a group of employees, family members, or members of any type of organization
responsible for finalizing major decisions, usually involving a purchase. In a business setting, major
purchases typically require input from various parts of the organization, including finance, accounting,
purchasing, information technology management, and senior management. Highly technical purchases,
such as information systems or production equipment, also require the expertise of technical specialists.
In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned
group with specific mandates, criteria, and procedures. The employees that constitute the buying center
will vary depending on the item being purchased.
In a generic sense, there are typically six roles within any buying center. They are:
1. Initiator who suggests purchasing a product or service.
2. Influencers who try to affect the outcome decision with their opinions.
3. Deciders who have the final decision.
4. Buyers who are responsible for the contract.
5. End users of the item being purchased.
6. Gatekeepers who control the flow of information.
BUYCLASS AND BUYPHASE
In 1967, the Canadian, American and Israeli marketing researchers, Robinson, Faris and Wind, introduced
the buygrid framework as a generic conceptual model for buying processes of organizations. They saw
industrial buying not as single events, but as organizational decision-making processes where multiple
individuals decide on a purchase. Their framework consists of a matrix of buyclasses and buyphases.
The BUYCLASSES are:
1. New Tasks
The first-time buyer seeks a wide variety of information to explore alternative purchasing solutions to his
organizational problem. The greater the cost or perceived risks related to the purchase, the greater the
need for information and the larger the number of participants in the buying center.
2. Modified Rebuy
The buyer wants to replace a product the organization uses. The decision making may involve plans to
modify the product specifications, prices, terms or suppliers as when managers of the company believe
that such a change will enhance quality or reduce cost. In such circumstances, the buying center proved to
require fewer participants and allow for a quicker decision process than in a new task buyclass.
3. Straight Rebuy
The buyer routinely reorders a product with no modifications. The buyer retains the supplier as long as
the level of satisfaction with the delivery, quality and price is maintained. New suppliers are considered
only when these conditions change. The challenge for the new supplier is to offer better conditions or
draw the buyer's attention to greater benefits than in the current offering.
BUYPHASES: Based on field research, Robinson, Faris and Wind divided the buyer purchase process
into eight sequential, distinct but interrelated BUYPHASES:
1. Recognition of the organizational problem or need
2. Determination of the characteristics of the item and the quantity needed
3. Description of the characteristics of the item and the quantity needed
4. Search for and qualification of potential sources
5. Acquisition and analysis of proposals
6. Evaluation of the proposals and selection of suppliers
7. Selection of an order routine
8. Performance feedback and evaluation
The most complex buying situations occur in the upper left quadrant of the buygrid matrix where the
largest number of decision makers and buying influences are involved. A new task that occurs in the
problem recognition phase (1) is generally the most difficult for management.
The buying process can vary from highly formalized to an approximation depending on the nature of the
buying organization, the size of the deal and the buying situation.
The relationship between the buyer and seller is initiated in phases 1 and 2. Assessing the buyer's needs
and determining gaps between the current and desired situation is important. Buyers need assistance in
forming realistic perceptions of both the current and the desired situation. Need gaps create the motive
behind any purchase.
The relationship needs to be developed during phases 3 to 7. A sales person must be aware that a buyer
not only has functional needs, but psychological, social, knowledge and situational needs as well. These
components should be addressed in meetings in order to obtain commitment. The purchase can be a one-
time transaction of a repetitive nature. When there are multiple deliveries, the supplier and buyer must
agree on an order routine.
As buyphases are completed, the process of 'creeping commitment' occurs and reduces the likelihood of
new suppliers gaining access to the buying situation.
During the performance feedback and evaluation phase, the relationship between the seller and buyer can
develop into a longer term engagement. Buyer loyalty and customer satisfaction are primarily determined
by the sales activities during this last phase.
References:
Industrial buying and creative marketing, Patrick Robinson, Yoram Wind and C. W. Faris (1967): Allyn
& Bacon United States ISBN B0006BRX3A
The above text is directly copied from the following two Internet sources
http://www.google.com/search?sourceid=navclient&aq=1h&oq=&ie=UTF-
8&rlz=1T4HPIA_enUS311US311&q=buying+center+wiki
http://www.provenmodels.com/549/buygrid-framework/c.-w.-faris--patrick-robinson--yoram-wind/

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robinson faris wind b2b by ansh

  • 1. ROBINSON, FARIS & WIND (1967) SUMMARY INFORMATION BUYING CENTER A buying center (also known as a decision making unit or DMU), in marketing, procurement, and organizational studies, is a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase. In a business setting, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management. Highly technical purchases, such as information systems or production equipment, also require the expertise of technical specialists. In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned group with specific mandates, criteria, and procedures. The employees that constitute the buying center will vary depending on the item being purchased. In a generic sense, there are typically six roles within any buying center. They are: 1. Initiator who suggests purchasing a product or service. 2. Influencers who try to affect the outcome decision with their opinions. 3. Deciders who have the final decision. 4. Buyers who are responsible for the contract. 5. End users of the item being purchased. 6. Gatekeepers who control the flow of information. BUYCLASS AND BUYPHASE In 1967, the Canadian, American and Israeli marketing researchers, Robinson, Faris and Wind, introduced the buygrid framework as a generic conceptual model for buying processes of organizations. They saw industrial buying not as single events, but as organizational decision-making processes where multiple individuals decide on a purchase. Their framework consists of a matrix of buyclasses and buyphases. The BUYCLASSES are: 1. New Tasks The first-time buyer seeks a wide variety of information to explore alternative purchasing solutions to his organizational problem. The greater the cost or perceived risks related to the purchase, the greater the need for information and the larger the number of participants in the buying center. 2. Modified Rebuy The buyer wants to replace a product the organization uses. The decision making may involve plans to modify the product specifications, prices, terms or suppliers as when managers of the company believe that such a change will enhance quality or reduce cost. In such circumstances, the buying center proved to require fewer participants and allow for a quicker decision process than in a new task buyclass. 3. Straight Rebuy The buyer routinely reorders a product with no modifications. The buyer retains the supplier as long as the level of satisfaction with the delivery, quality and price is maintained. New suppliers are considered only when these conditions change. The challenge for the new supplier is to offer better conditions or draw the buyer's attention to greater benefits than in the current offering.
  • 2. BUYPHASES: Based on field research, Robinson, Faris and Wind divided the buyer purchase process into eight sequential, distinct but interrelated BUYPHASES: 1. Recognition of the organizational problem or need 2. Determination of the characteristics of the item and the quantity needed 3. Description of the characteristics of the item and the quantity needed 4. Search for and qualification of potential sources 5. Acquisition and analysis of proposals 6. Evaluation of the proposals and selection of suppliers 7. Selection of an order routine 8. Performance feedback and evaluation The most complex buying situations occur in the upper left quadrant of the buygrid matrix where the largest number of decision makers and buying influences are involved. A new task that occurs in the problem recognition phase (1) is generally the most difficult for management. The buying process can vary from highly formalized to an approximation depending on the nature of the buying organization, the size of the deal and the buying situation. The relationship between the buyer and seller is initiated in phases 1 and 2. Assessing the buyer's needs and determining gaps between the current and desired situation is important. Buyers need assistance in forming realistic perceptions of both the current and the desired situation. Need gaps create the motive behind any purchase. The relationship needs to be developed during phases 3 to 7. A sales person must be aware that a buyer not only has functional needs, but psychological, social, knowledge and situational needs as well. These components should be addressed in meetings in order to obtain commitment. The purchase can be a one- time transaction of a repetitive nature. When there are multiple deliveries, the supplier and buyer must agree on an order routine. As buyphases are completed, the process of 'creeping commitment' occurs and reduces the likelihood of new suppliers gaining access to the buying situation. During the performance feedback and evaluation phase, the relationship between the seller and buyer can develop into a longer term engagement. Buyer loyalty and customer satisfaction are primarily determined by the sales activities during this last phase. References: Industrial buying and creative marketing, Patrick Robinson, Yoram Wind and C. W. Faris (1967): Allyn & Bacon United States ISBN B0006BRX3A The above text is directly copied from the following two Internet sources http://www.google.com/search?sourceid=navclient&aq=1h&oq=&ie=UTF- 8&rlz=1T4HPIA_enUS311US311&q=buying+center+wiki http://www.provenmodels.com/549/buygrid-framework/c.-w.-faris--patrick-robinson--yoram-wind/