The document discusses the nature of industrial buying and organizational purchasing processes. It describes the typical stages in an organizational buying process including problem recognition, specifications, supplier search, proposal analysis, selection, and performance review. It also outlines three common buying situations: new tasks, modified rebuys, and straight rebuys. New tasks involve the most information gathering and problem solving while straight rebuys require little new information. The document also discusses forces that influence organizational buying behavior like the economy, technology, and goals/strategies of the purchasing organization.

1. Nature of Industrial Buying

2. Organizational Buying Process 1. Problem Recognition 2. General Description of Need 3. Product Specifications 4. Supplier Search 5. Acquisition and Analysis of Proposals 6. Supplier Selection 7. Selection of Order Routine 8. Performance Review

7. Buying Decision Approaches Causal purchases …involve no information search or analysis. Routine low priority …decisions are more important and involve a moderate amount of analysis.

10. With rising competitive pressures managers are using rigorous cost modeling approaches to identify factors that drive the cost of purchased goods and services. The Buygrid Framework for Organizational Buying Situations

13. Members of the buying center assume different roles throughout the procurement process. Clues for Identifying Powerful Buying Center Members

14. Buying Center Influence Matrix Purchasing Engineering Production Purchasing Engineering Production Engineering Purchasing R & D Modification & evaluation of buying alternatives Purchasing Engineering Production Purchasing Engineering Production Purchasing Engineering R & D Quality control Supplier selection Purchasing Engineering Production Engineering Purchasing Production R & D Quality control Engineering Purchasing Production R & D Establishment of specification Production Purchasing Purchasing Production Engineering Engineering Purchasing R & D Production Need identifcation Straight Rebuy Modified Rebuy New Buy Phase

19. The behavior of organizational buyers is influenced by environmental, organizational, group, and individual factors. Major Elements of Organizational Buying Behavior