This chapter discusses organizational buying and the business market. It addresses six key questions: 1) What is the business market and how does it differ from the consumer market? 2) What buying situations do organizational buyers face? 3) Who participates in the business buying process? 4) What are the major influences on organizational buyers? 5) How do business buyers make decisions? 6) How do institutions and government agencies do their buying? The chapter covers topics such as characteristics of the business market, different types of buying situations, participants in the buying process, and factors that influence organizational purchasing decisions.

8. What are some of the benefits to an organization that can be derived from a single source solution , or a systems buying arrangement with a prime contractor? What are some of the potential pitfalls? What can the company do to protect itself from these hazards? Discussion Question

12. Table 8.1: Buygrid Framework: Major Stages (Buyphases) of the Industrial Buying Process in Relation to Major Buying Situations (Buyclasses) Yes Yes Yes 8. Performance review No Maybe Yes 7. Order-routine specification No Maybe Yes 6. Supplier selection No Maybe Yes 5. Proposal solicitation No Maybe Yes 4. Supplier search Buyphases Yes Yes Yes 3. Product specification No Maybe Yes 2. General need description No Maybe Yes 1. Problem recognition Rebuy Rebuy Task Straight Modified New Buyclasses

14. Table 8-2: An Example of Vendor Analysis Total score: .30(4) + .20(3) + .30(4) + .10(2) + .10(3) = 3.5 x .10 Supplier Flexibility x .10 Service reliability x .30 Product reliability x .20 Supplier reputation x .30 Price Excellent (4) Good (3) Fair (2) Poor (1) Importance Weights Rating Scale Attributes