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Hutt_Speh_Chapter2_Organizational_Buying.pptx
- 1. Organizational Buying Behavior Chapter2 | Hutt & Speh
- 2. Introduction to OrganizationalBuying • Organizational buying refers to the decision- making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. • Key buyers: Manufacturers, Resellers, Institutions, Governments.
- 3. Characteristics of OrganizationalBuying • - Complex decision-making unit • - Professional purchasing • - Emphasis on long-term relationships • - Derived demand • - Formal procedures and policies
- 4. Buygrid Framework • 1.New Task: First-time purchase; high involvement • 2. Modified Rebuy: Buyer wants to modify product specs or terms • 3. Straight Rebuy: Routine purchase from approved suppliers
- 5. Buying Center Roles •- Users: Use the product/service • - Influencers: Define specs and provide information • - Buyers: Select suppliers and arrange terms • - Deciders: Make the final decision • - Gatekeepers: Control information flow
- 6. Forces Influencing BuyingBehavior • - Environmental: Economy, technology, competition • - Organizational: Objectives, policies, structure • - Interpersonal: Power relationships, conflict • - Individual: Age, education, risk attitude
- 7. Organizational Buying Process •1. Problem recognition • 2. General need description • 3. Product specification • 4. Supplier search • 5. Proposal solicitation • 6. Supplier selection • 7. Order-routine specification • 8. Performance review
- 8. E-Procurement and DigitalTrends • - Online catalogs and reverse auctions • - Use of AI for vendor analysis • - Collaborative platforms for supply chain integration • - Cost efficiency and real-time tracking
- 9. Case: Boeing’s SupplierManagement • Boeing uses a strategic sourcing model with a long-term orientation. Emphasis on global suppliers, strict evaluation metrics, and integrated product development with suppliers.
- 10. Research Insight • Study(Sheth, 1996): Over 70% of B2B buyers engage multiple stakeholders in purchase decisions. Implication: Marketers must appeal to both rational and relational drivers across roles.
- 11. Summary • - Buyingcenters and Buygrid help explain B2B purchasing • - Buying is influenced by organizational, interpersonal, and external forces • - Understanding roles and stages is key to successful B2B marketing