Date post: | 28-Nov-2014 |
Category: |
Documents |
Upload: | raveendramanipal |
View: | 138 times |
Download: | 0 times |
Industrial Buying Industrial Buying BehaviorBehavior
ByBy
Raveendra Rao.K.Raveendra Rao.K.
IM KRR 2011IM KRR 2011
Overview of the PresentationOverview of the Presentation
1.1. Industrial buyingIndustrial buying
2.2. General Purchase Procedures General Purchase Procedures
3.3. Buy Grid ModelBuy Grid Model
4.4. Interpersonal dynamics in Interpersonal dynamics in Industrial buyingIndustrial buying
5.5. Conflict resolution strategies Conflict resolution strategies
6.6. Difficulties in industrial buyingDifficulties in industrial buying
IM KRR 2011IM KRR 2011
Industrial BuyingIndustrial Buying
The purchasing decision process The purchasing decision process that organizational buyers apply that organizational buyers apply when confronted with different when confronted with different buying situations. buying situations.
The various role of buying influences The various role of buying influences in the purchasing decision process in the purchasing decision process
The criteria that organizational The criteria that organizational buyers apply in making purchasing buyers apply in making purchasing decisions decisions
IM KRR 2011IM KRR 2011
Buy Grid ModelBuy Grid Model
Buying Buying SituationsSituations
Straight rebuyStraight rebuy
Modified rebuyModified rebuy
New taskNew task
Routine reorders Routine reorders from approved from approved vendor listvendor list
Low involvement, Low involvement, minimal time minimal time commitmentcommitment
Example:Example: copier copier paperpaper
IM KRR 2011IM KRR 2011
Contd….Contd….
Buying SituationsBuying Situations
Straight rebuyStraight rebuy
Modified rebuyModified rebuy
New taskNew task
Specifications, prices, Specifications, prices, delivery terms or other delivery terms or other aspects require aspects require modification modification
Moderate level of Moderate level of involvement and time involvement and time commitmentcommitment
Example:Example: desktop desktop computerscomputers
IM KRR 2011IM KRR 2011
Contd….Contd….
Buying SituationsBuying Situations
Straight rebuyStraight rebuy
Modified rebuyModified rebuy
New taskNew task
Purchasing a product or Purchasing a product or service for the service for the firstfirst time time
High level of involvement High level of involvement
and time commitment; and time commitment; multiple influencesmultiple influences
Example:Example: selecting a web selecting a web site design firm or site design firm or consultantconsultant
IM KRR 2011IM KRR 2011
Contd….Contd….
Eight Buyphases of Industrial Buying
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order-Routine Specification
Performance Review
IM KRR 2011IM KRR 2011
Buying CentreBuying Centre
Gatekeepers
Influencers
Users
Initiators
Buyers
Deciders
Approvers
Buying Centre - Includes all members of the organization who play any of sevenroles in the purchase decision process
IM KRR 2011IM KRR 2011
Major influences on buying behaviorMajor influences on buying behavior
IM KRR 2011IM KRR 2011
Purchasing Influence on Buyer’s Purchasing Influence on Buyer’s Behavior Behavior
Material requirement planning Material requirement planning
Just in time purchasing Just in time purchasing
Centralized PurchasingCentralized Purchasing
Buyer Technology Buyer Technology
IM KRR 2011IM KRR 2011
Conflict Resolution Strategies Conflict Resolution Strategies
Party’s attempt to Satisfy others Concern
Compromising
Collaborating
Accommodating
Competing
Avoiding
IM KRR 2011IM KRR 2011
Party’s attempt to Satisfy Own Concern
Issues in Industrial BuyingIssues in Industrial Buying
1. Size of the Market
2. Geographic Concentration
3. Competitive Nature
4. Technical Aspects
IM KRR 2011IM KRR 2011
ExerciseExerciseExplain the following situations of Explain the following situations of purchase with buy-grid modelpurchase with buy-grid model
1.1.MU procuring latest security system MU procuring latest security system software for monitoring activities in software for monitoring activities in campus.campus.
2.2.KH buying 3D CT scanner replacing the KH buying 3D CT scanner replacing the 2D scanner at radiology department.2D scanner at radiology department.
3.3.MIM buying stationery for workshop to MIM buying stationery for workshop to be conducted at Institute.be conducted at Institute.
IM KRR 2011IM KRR 2011
4. MU purchasing lap top for new 4. MU purchasing lap top for new batch of students and staff.batch of students and staff.
5. TVS motors purchasing 5. TVS motors purchasing carburetor for their new model of carburetor for their new model of motor bike to be launched during motor bike to be launched during January 2012.January 2012.
6. Memento purchased by MIM for 6. Memento purchased by MIM for their annual day.their annual day.
7. Building maintenance software 7. Building maintenance software for New building of MIM.for New building of MIM.
IM KRR 2011IM KRR 2011
Thank You
IM KRR 2011IM KRR 2011