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Business buying process

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Business buying process

  1. 1. Phases in the Business Buying Process <ul><li>Need recognition </li></ul><ul><li>Defining specifications </li></ul><ul><li>Search for suppliers </li></ul><ul><li>Evaluating proposals </li></ul><ul><li>Supplier selection </li></ul>
  2. 2. Roles of entities in the business buying process <ul><li>Initiators </li></ul><ul><li>Influencers </li></ul><ul><li>Users </li></ul><ul><li>Buyers </li></ul><ul><li>Deciders </li></ul><ul><li>Gatekeepers </li></ul>
  3. 3. Risk assessment and organisational buying <ul><li>Higher the risk, larger the no. of entities involved </li></ul><ul><li>Greater the risk, lesser the importance of ‘price’ as a decision criterion </li></ul><ul><li>Greater the risk, higher the information search in the phases of defining specifications and searching for suppliers </li></ul><ul><li>Higher risk facilitates a collaborative relationship between customer and supplier </li></ul>
  4. 4. Types of uncertainty in the business buying process <ul><li>Need uncertainty – customers experience difficulty in expressing the exact nature of need </li></ul><ul><li>Market uncertainty – differences between suppliers (quality and service) and evolution of the supplier market creates uncertainty </li></ul><ul><li>Transaction uncertainty – customers are unable to predict the outcome of the transaction </li></ul>
  5. 5. Types of buying situations <ul><li>‘New buy’ – purchase of item/s not previously purchased </li></ul><ul><li>Modified re-buy – items purchased in the past but not recently or regularly </li></ul><ul><li>Straight re-buy – purchase of an item that is purchased frequently and regularly </li></ul>

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