derived from demand of

consumer goods

Demand characteristics / Relative inelastic

motivations of industrial buyers
Erratic
Processors & manufacturers 1. Facilitate production
purchase most of these Purchase motivation - Org Cyclical
2. use by org's employed buyers purchase for:
e.g manual & farm products Raw materials
3. resale to other customers Fewer in #'s
Market demographics of
Limited supply, price is critical larger
industrial buyers:
Differences between Org and
Consumer markets Geographically concentrated

e.g flour, microchips (processed Component parts and materials

goods - high volume purchases use of pro buying specialists

Produces final product but not Installations Closer buyer-seller relationships

Buyer-seller relationships
part of final product 6 categories of Industrial
goods and services The customer Multiple buying influences

e.g PC's, file cabinets Accessory equipment buy on specifications

Users
finished goods that facilitate the
final product production Provide info for evaluating
Influencers
Participants in Org purchasing alternatives e.g technical exports
Finished goods that facilitate
process (buying centre) control flow of info to others e.g
repairs, manitenance, ongoing Gatekeepers
ops Operating supplies Module 7 purchasing agents

Buyers Authority to contract suppliers &

e.g office suuplies & repair parts
Understanding Organisational negotiate transactions
Expertise to facilitate ongoing Markets and Deciders
OPS Buying behaviour Makes final purchase decision
Business services
e.g law firms, agencies Routine purchase
1) Straight rebuy Needs stay the same buy buying
centre
Types of buying situations 2) Modified rebuy
PAGE 85 SUMMARY New & unique need
Leads to closer relationships &
3) New task buy lower costs / rate from suupliers
Requirements planning &
forecasts

1) Recognition of need or
problem Product spec determination
Making Purchase decisions
Purchase decision making
Value analysis Systematic appraisal of an items
process (same as High
2) Search for info on product design & quality performance
Involvement Purchase decisions
of consumer)
Make or buy Produce of buy in decisions?

Choice criteria Construct quantitative ratings to

3) Evaluation & selection of aid selection
suppliers Vendor analysis

Recipriocity Org favours suuplier that is also

5) Postpurchase evaluation and a customer
4) Purchase decision
feedback