Chapter 8

1. Chapter 8 Analyzing Business Markets and Business Buying Behavior

2. How to distinguish Business and Consumer markets? • Look at the purpose of uses-- 3 purposes: • Reselling? • Using in further production? • Providing service to ultimate customer?

3. Differences between Business and Consumer Markets • Fewer buyers • Larger buyers • Close supplier-customer relationship • Geographically concentrated • Derived demand • Inelastic demand (inelastic in the short-run and for the insignificant part) • Fluctuating demand (to be continued)

4. Differences between Business and Consumer Markets • Professional purchasing • Several buying influences • Multiple sales calls • Direct purchasing • Reciprocity • Leasing

5. New Task Buying Modified Rebuy • Involved Decision Making Straight Rebuy Custom furniture New security system Buildings Weapon systems New vehicles Elec. Equip Computer equip Utilities Office Supplies Bulk chemicals

6. Participants in the Business Buying Process • Initiator • User • Influencer • Decider • Approver • Buyer • Gatekeeper

7. Level of • demand • Economic • outlook • Interest rate • Rate of techno- • logical change • Political and • regulatory • developments • Competitive • developments • Social responsi- • bility concerns Environmental • Objectives • Policies • Procedures • Organizational • structures • Systems Organizational • Interests • Authority • Status • Empathy • Persuasive- • ness Interpersonal • Age • Income • Education • Job position • Personality • Risk attitudes • Culture Individual Major Influences on Industrial Buying Behavior Business Buyer

8. Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review Need Recognition Info Search/ Eval Purchase Post Purchase