Unit 6.AModel ofBusinessBuyer Behavior
Unit 6. A Model of Business Buyer Behavior
AModelofBusinessBuyerBehaviorAt themostbasiclevel,marketers wantto knowhow business buyers will respond to variousmarketing stimuli.Figure 6.1 shows a model ofbusiness buyer behavior. In this model, marketingand other stimuli affect the buying organizationand produce certain buyer responses.As withconsumer buying,the marketing stimuliforbusiness buying consist of thefour Ps:productprice,place,and promotion.Other stimuli includemajorforcesin theenvironment:economic,technological,political,cultural,and competitive
A Model of Business Buyer Behavior At the most basic level, marketers want to know how business buyers will respond to various marketing stimuli. Figure 6.1 shows a model of business buyer behavior. In this model, marketing and other stimuli affect the buying organization and produce certain buyer responses. As with consumer buying, the marketing stimuli for business buying consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces in the environment: economic, technological, political, cultural, and competitive
These stimuli enter the organization andare turned into buyer responses: product orservice choice; supplier choice; orderquantities;and delivery,service,andpayment terms. In order to design goodmarketing-mix strategies,the marketermust understand what happens within theorganizationto turn stimuliinto purchaseresponses
These stimuli enter the organization and are turned into buyer responses: product or service choice; supplier choice; order quantities; and delivery, service, and payment terms. In order to design good marketing-mix strategies, the marketer must understand what happens within the organization to turn stimuli into purchase responses
ModelofBusinessBuyerBehavior(See P94 Fig.6.1)BuyerResponsesThe EnvironmentTheBuyingOrganizationProduct orMarketingservice choiceThe buyingStimuli:center·ProductSupplierChoice·PriceBuying decision·PlaceOrderQuantitiesprocess·PromotionDeliveryterms(InterpersonalandOtherStimuli:and timesindividualinfluences·Economic.TechnologicalService terms·Political(Organizational·CulturalInfluencesPayment·Competitive
4 Model of Business Buyer Behavior (See P94 Fig. 6.1) The Environment Marketing Stimuli: •Product •Price •Place •Promotion Other Stimuli: •Economic •Technological •Political •Cultural •Competitive The Buying Organization The buying center Buying decision process (Interpersonal and individual influences) (Organizational Influences) Buyer Responses Product or service choice Supplier Choice Order Quantities Delivery terms and times Service terms Payment
The modelinFigure 6.1 suggestsfourquestionsaboutbusinessbuyerbehavior:1.What buying decisions do businessbuyers make?2.Who participates in the buying process?3.What are the major influences onbuyers?4.How do business buyers maketheirbuyingdecisions?
The model in Figure 6.1 suggests four questions about business buyer behavior: ◼ 1. What buying decisions do business buyers make? ◼ 2. Who participates in the buying process? ◼ 3. What are the major influences on buyers? ◼ 4. How do business buyers make their buying decisions?
Major Types of Buying SituationsNew TaskBuyingModified RebuyStraight Rebuy
6 New Task Buying Involved Decision Making Modified Rebuy Major Types of Buying Situations Straight Rebuy
MajorTypesof Buying Situations(SeeP95)There are three major types of buyingsituations.At one extreme is the straightrebuy,which is a fairlyroutine decision.Atthe other extreme is the new task buyingwhich may call for thorough research.In themiddleis the modified rebuy,whichrequiressomeresearch.In a straight rebuy,the buyer reorders somethingwithout any modifications.It is usually handled on aroutine basis bythe purchasing department
7 Major Types of Buying Situations (See P95) There are three major types of buying situations. At one extreme is the straight rebuy, which is a fairly routine decision. At the other extreme is the new task buying, which may call for thorough research. In the middle is the modified rebuy, which requires some research. ◼ In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department
In a modified rebuy,thebuyer wantsto modifyproductspecifications,prices,terms,or suppliersThe modified rebuy usually involves more decisionparticipants than does the straight rebuy.The insuppliers may become nervousand feel pressuredto put their best foot forward to protect anaccount.Out suppliers may see the modifiedrebuy situation as an opportunity to make abetter offer and gain new business..Acompany buying aproduct or servicefor thefirst time faces a new-task situation.In suchcases,the greater the cost or risk,the larger thenumber of decision participants and thegreatertheir efforts to collect information will be
◼ In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. The modified rebuy usually involves more decision participants than does the straight rebuy. The in suppliers may become nervous and feel pressured to put their best foot forward to protect an account. Out suppliers may see the modified rebuy situation as an opportunity to make a better offer and gain new business. ◼ A company buying a product or service for the first time faces a new-task situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater their efforts to collect information will be
Thenew-task situationisthe marketer'sgreatest opportunity and challenge.The marketernot only tries to reach as many key buyinginfluences aspossiblebutalso provides help andinformation.Thebuyermakes thefewest decisionsin thestraight rebuy and the most in the new-taskdecision. In the new-task situation,the buyermust decide on product specifications,suppliers,price limits,payment terms,order quantities,delivery times, and service terms.The order ofthese decisions varies with each situation, anddifferent decision participants influence eachchoice
◼ The new-task situation is the marketer's greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible but also provides help and information. ◼ The buyer makes the fewest decisions in the straight rebuy and the most in the new-task decision. In the new-task situation, the buyer must decide on product specifications, suppliers, price limits, payment terms, order quantities, delivery times, and service terms. The order of these decisions varies with each situation, and different decision participants influence each choice
ParticipantsintheBusinessBuyingProcess(TextonP97)UsersInfluencersDecision-Making Unitof a BuyingOrganizationBuying RolesBuyersisCalledItsIncludeBuyingCenterDecidersGatekeepers10
10 Unexpected Situational Factors Attitudes of Others Participants in the Business Buying Process （Text on P97) Ethical DecisionMaking Unit of a Buying Organization is Called Its Buying Center. Users Influencers Buyers Deciders Gatekeepers Buying Roles Include