The Stages in the Organizational Buying Process
Chapter 4: Business, Government and Institutional Buying Process
4.4 The Stages in the Organizational Buying Process
The process is fundamentally the same as described for consumer buying -- many of the steps are similar, if not identical. As with consumer buying, because some decisions are more complex than others, not all decisions will involve all the steps discussed. Nor will the steps require the same degree of attention, resource commitments, and personnel. New task decisions normally involve all the steps we will discuss; steps may be abbreviated or skipped entirely for modified rebuys and straight rebuys. However, it is always important to recognize that, for every organizational purchase decision, the over-riding objective is to make the decision that is in the best interests of the firm. As a result, the emphasis in decision-making is on objectivity and maximizing utility. With these caveats in mind, the organizational buying process consists of seven steps, ranging from ‘need recognition’ to ‘post-purchase evaluation.’
1. RECOGNITION OF NEED
Need recognition can result in several ways. Internal stimuli that trigger need recognition and kick-off the purchase process are those that result from some event within the firm. For example, need recognition may occur when users or other initiators suggest that costs can be reduced or efficiency improved by investing in new equipment or making changes in existing processes. Often, the need to engage in a purchase decision results from a dissatisfying experience with existing products or vendors. Something goes wrong! These "triggers" generally lead to modified rebuys or new task purchase decisions.
In contrast, many purchases result from virtually ‘automatic’ need recognition associated with running low on operating supplies, parts, or materials. Many vendors will monitor their customers’ inventories and automatically ship additional supplies when inventories reach critical points. Such arrangements are
4.4 The Stages in the Organizational Buying Process
The process is fundamentally the same as described for consumer buying -- many of the steps are similar, if not identical. As with consumer buying, because some decisions are more complex than others, not all decisions will involve all the steps discussed. Nor will the steps require the same degree of attention, resource commitments, and personnel. New task decisions normally involve all the steps we will discuss; steps may be abbreviated or skipped entirely for modified rebuys and straight rebuys. However, it is always important to recognize that, for every organizational purchase decision, the over-riding objective is to make the decision that is in the best interests of the firm. As a result, the emphasis in decision-making is on objectivity and maximizing utility. With these caveats in mind, the organizational buying process consists of seven steps, ranging from ‘need recognition’ to ‘post-purchase evaluation.’
1. RECOGNITION OF NEED
Need recognition can result in several ways. Internal stimuli that trigger need recognition and kick-off the purchase process are those that result from some event within the firm. For example, need recognition may occur when users or other initiators suggest that costs can be reduced or efficiency improved by investing in new equipment or making changes in existing processes. Often, the need to engage in a purchase decision results from a dissatisfying experience with existing products or vendors. Something goes wrong! These "triggers" generally lead to modified rebuys or new task purchase decisions.
In contrast, many purchases result from virtually ‘automatic’ need recognition associated with running low on operating supplies, parts, or materials. Many vendors will monitor their customers’ inventories and automatically ship additional supplies when inventories reach critical points. Such arrangements are