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Business Markets and Business Buyer Behavior

Business markets involve organizations that purchase goods and services for use in production or resale. They differ from consumer markets in having fewer but larger buyers, close supplier relationships, professional purchasing processes, and multiple influences on buying decisions. Organizational buying involves various buying situations and centers composed of different roles that influence purchasing. Vendors are evaluated on attributes like price, reputation, reliability, and flexibility. E-commerce platforms now facilitate business-to-business transactions online through marketplaces, sales automation, and procurement tools.

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Chirag Goyal
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64 views15 pages

Business Markets and Business Buyer Behavior

Business markets involve organizations that purchase goods and services for use in production or resale. They differ from consumer markets in having fewer but larger buyers, close supplier relationships, professional purchasing processes, and multiple influences on buying decisions. Organizational buying involves various buying situations and centers composed of different roles that influence purchasing. Vendors are evaluated on attributes like price, reputation, reliability, and flexibility. E-commerce platforms now facilitate business-to-business transactions online through marketplaces, sales automation, and procurement tools.

Uploaded by

Chirag Goyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Business Markets and Business

Buyer Behavior
B2B Brand History
Role of B2B Brands
Brand Customer Relationship
Brand in B2B Environment
Business Market
Organizations that acquire goods and services
used in
production of other products or
services that are sold, rented or supplied to others.
Major industries in business market
Agriculture, forestry, fisheries, mining,
manufacturing, construction, transportation,
communication, public utilities, banking,
insurance, distribution, services
Difference: Consumer and
Organizational Buying
Fewer, larger buyers
Caterpillar cranes, Airbus aircrafts
Close supplier-customer relationship
Customization
Reciprocal buying
Professional purchasing
Quotation, contract
Technical data
Multiple buying influences
Buying committee (technical expert, senior management)
Sales team
Multiple sales calls
Longer sales cycle
Difference: Consumer and
Organizational Buying
Derived demand.
Coal India>Steel companies>Automobiles
Inelastic demand
Leather>Shoes
Fluctuating demand
Acceleration effect
Geographically concentrated buyers
Bangalore
Direct purchasing
Air India > Boeing, Airbus
Buying Situations
Buying Situations
Straight rebuy
Reordering on routine basis; approved list of
suppliers
Modified rebuy
Buyer changes product specifications, prices,
delivery requirements etc.
New task
Buyer buys a product/service for the first time.
Buying Centres
Buying Centres
Initiators
Users or others in organization who request that something be purchased.
Users
Use product/service. May initiate buying proposal and define product
requirements.
Influencers
Influence buying decision. Helps to define specifications and provides
information for evaluating alternatives.
Deciders
Decide on product requirements and or on suppliers.
Approvers
Who authorize proposed actions of deciders/buyers
Buyers
Formal authority to select suppliers and negotiate terms of purchase.
Gatekeepers
Control the flow of information to and among others within the buying
centre. Receptionists, telephone operators.
Organizational Decision Making
Process
1.Problem 2.General need 3.Product
recognition description specifications

6.Supplier 5.Proposal 4.Supplier


selection solicitation search

7.Order routine 8.Performance


specification review
An Example of Vendor Analysis
Attributes
Weightage Poor (1) Fair (2) Good (3) Excellent (4)

Price .30 X

Supplier reputation .20 X

Product reliability .30 X

Service reliability .10 X

Supplier flexibility .10 X

Total score:
.3(4)+.2(3)+.3(4)+.1(2)+.
1(3) = 3.5
B2B e-commerce
Alibaba (marketplace)
Salesforce
IndiaMART (marketplace)
Exporterindia
Tradeindia
Sulekha
Bizbilla
Company websites
E-procurement websites
Vertical portal sites
Brokering sites
infomediaries

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