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Group 6Deepak 7090

Abhinav 8001

Kaustubh 8019Pankaj 8025Pratyaya 8032

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What is Buying Centre Concept in businesses and organizations,where many people with different roles and priorities participate in purchasingdecisions.

Group and Social Aspects of buying centerLeadership patternCohesiveness of Buying CentreOrganization CharacteristicsAutonomy, intimacy, polarization

Stability, flexibility

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Structural and Interactive Dimensions

of the Buying Center

Vertical involvement

Lateral involvementExtensivityConnectednessCentrality

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Structural variables of the firm

Centralization -degree to which authority, responsibility,and power are concentrated within an organization orbuying unit.

formalization -extent to which activity in an organization orbuying group is formally prescribed by rules, policies, andprocedures.complexity -the degree to which the organization iscompartmentalized and pursues functional specialization.

size- organizational revenues, employees, or some othermeasure.participation -the extent to which various organizationalmembers are involved in decision making.Purchase situation : Capital Equipment and Services

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Research proposition

(1) Higher purchase importance, complexity, and novelty -lead to more involved vertical and horizontal decision making

(2) Local variables, such as those having to do with thepurchase situation, ought to have more influence on buyingcenter communications than structural aspects of firms

(3) Product and service purchases should differ reliably on anumber of the structural and interactive dimensions,

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Method

Snowball interviewing technique for multi personresearch

Starts with purchasing dept. person241 interviews, Min 2 interviews per buying decisionThe mean time periods were 27 weeks for capitalequipment and 20 weeks for services. (Min 2 weeksand max 2 years )One capital equipment and one service decision fromeach firmIncluded straight rebuy, modified rebuy and newpurchases

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Extensivity More formalized the organization , thegreater the extensivity of the buying behavior.

- The importance and complexity of purchase ,thesetwo attributes have the largest effect on the buying

process.

Lateral Involvement Affected by organizationalstructural variables and purchase situation variables.

-Importance and novelty of the purchase situation alsoaffect the lateral involvement I n the buying process .

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Vertical involvement - Heavily influenced by

purchase situation attributes.-Purchase class, importance and complexity of thesituation affect the vertical involvement in the buyingcenter.

-complexity of the situation had the greatest effect onvertical involvement in the buying center.

Connectedness Greater the written communicationconcerning the purchase lesser the connectedness of

the buying center.- The more centralization in organization the greater

the connectedness in buying center.

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Conclusions & Implications

Purchasing of industrial services involved fewer verticallayers and fewer manager overall organizational authority.

Local variables of purchase situation were strongerpredictors of buying center communications.

Extensively & Connectedness indicate the ability of thebuying center to process information quickly andaccurately.

Positioning of the purchasing manager is important-positioning at centre is a viable strategy.

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TH NK YOU