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Organisational Buying
Behaviour
Chapter 17
 The similarities and differences between
consumer/household behaviour and organisational buying
behaviour
 How marketers can analyse organisational buying
behaviour and apply it when developing marketing strategies
 The ways in which large, complex organisations approach
different types of purchase decisions
 How certain consumer behaviour concepts can be adapted
to studying and understanding organisational buying
behaviour
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
1
Overall Model of Organisational
Buying Behaviour
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
2
Organisational Culture and
Organisational Decisions
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
3
Organisational Values
 Different values create different corporate
cultures
 IBM versus apple
–
–
IBM is corporate, formal and takes itself seriously
Apple is less formal, creative and promotes a more
open organisational style
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
4
Organisational Demographics
 Organisational characteristics




size
activities and objectives
location
industry category
 Organisational composition characteristics




gender
age
education
income distribution of employees
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
5
Reference Groups
 Like consumer behaviour, organisational
behaviour and purchasing decisions are
influenced by reference groups
 In industrial markets, the most powerful
type of reference group is that of lead
users
 Trade associations
 Financial analysts
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
6
Lead Users
 Lead users are innovative organisations that
derive a great deal of their success from
leading change.
 As a result, their adoption of a new
product, service, technology, or
manufacturing process is watched and
emulated by the majority.
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
7
Internal Factors Influencing
Organisational Culture
 Shared values and value conflicts
 Perception
 Motives and emotions—organisational
decisions tend to be less emotional than
many consumer purchase decisions
 Learning—organisations learn through
their experiences and perceptions.
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
8
Purchase Situation
 Straight-rebuy
 low-involvement decisions
 made by a single person in
the organisation
 Modified-re-buy
 decision requires that
buyer organisation expends
more effort and includes
more people because of an
important modification to
the product, delivery, price
or terms and conditions
 New task
 first time buy
 lots of individuals
influencing and
involved with
decision-making
process
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
9
Organisational Decision Process
Problem recognition
Information search
Alternative evaluation
Purchase decision
Product usage
Evaluation
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
10