Marketing Organizational Buying Process – Flashcards

The decision making process where organizations establish the need for purchased products and services then identify or evaluate to choose among those. There are 3 influences purchase type, structural and behavioral.

1. Straight buy is routine reorders from past supplier 2. Modified is when the co. considers a limited # of alternatives before making a selection 3. New Task involves extensive research to make a decision on the buy.

Is based on the design of the organization. Some fators are the size of the company or type of company. Example, large companies have to make joint decisions, small companies can make a decision quickly, government agencies have to follow policies like sole source since there is a purchase policy in place.

Personal motivation and role perception. Personal motivation is factors like friendship, pride, fear or trust. Role perception is what a person believes their role is in a group of innovators/adaptive or lethargic. Example is if you are friends with other business owners you will buy from their company.

1. Recognize the product needed 2. Vendor analysis. search and evaluate the providers o the product needed. 3. Purchase decision. Negotiate contract and price. 4. Post purchase eval. ask if the product was what was expected to buy again.

producers, intermediaries (those who resale), government agencies, other institutions (schools/hospitals).

Buyer is motivated by rational and close emotional factors, decision is based on technical decisions, there is a lag time between contracting to buy and purchasing, the organization cannot be grouped into categories.