Purchase Decision Making

Topics: Marketing, Decision making, Decision theory Pages: 3 (741 words) Published: May 18, 2013
1.1 Describe the main stages of the purchase decision-making process Answer: 1.1
Business buying decision process consists of the following steps. * Problem recognition
* General need description
* Product specification
* Supplier search
* Proposal solicitation
* Supplier selection
* Order routine specification
* Performance review
(Kotler, Armstrong, 2008)
Problem recognition: It will occur when an organization recognizes a problem or need that can be meet by buying a product or service. General need description: Let's assume that an organization wants to improve its services or products soin this step characteristics of the services and products needed are explicitly expressed. Product specification: After the pervious step an organization will express the specification of the product or services which will be of course done with the consultation of the engineering or technical team. Supplier search: In this step an organization will search for the supplier of the goods needed this can be done by reviewing trade directories or by doing computer search. It will obviously short list those one who has good reputation and offers best deals. Proposal solicitation: Once the search is complete then an organization will invite suppliers to submit their proposal, in this case presentation by the supplier might be needed. Supplier selection: In this step the organization will finalize the supplier. Factors like competitive prices, honest communication, quality products and services etc are of great importance in this regard. Order routine specification: At this stage the organization management will prepare an order-routine specification. It will also incorporate final order with selected supplier and list of other elements technical services after sales required, date of delivery return polices and warranties etc. Performance review: After order-routine specification in this step organization will assess the performance of the...
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