Examples of Buy-in in the following topics:
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- The group of individuals responsible for making a buying decision in a B2B context are labelled the decision making unit (DMU).
- In the business-to-business (B2B) context (as opposed to B2C), buying decisions are made in groups.
- The group responsible for making the buying decision in companies is referred to as the decision making unit (DMU).
- In some cases, the buying center acts as an informal ad hoc group.
- In other cases, the buying center is a formally sanctioned group with specific mandates, criteria, and procedures.
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- B2B buying situations vary from B2C buying situations, so B2B marketers must develop different capabilities.
- In B2B there are usually committees of people in an organization and each member may have different attitudes toward any brand.
- Since there are more people involved in the decision-making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C.
- Buyers move in and out of each stage.
- Like B2C businesses there are similar buying types in B2B sales activities that include new buys, straight re-buys and modified re-buys.
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- Thus, in environments where such changes happen frequently, the strategic planning process needs to be ongoing and adaptive.
- Organizational factors such as the company's objectives, purchasing policies, and resources can influence the buying process.The size and composition of the buying center also plays a role in the business buying decision process.
- The interpersonal relationships between people working in the company's buying center can hinder the buying process.
- The personal characteristics of people in the buying center can influence the buying decision process.
- Individual factors including age, education level, personality, job tenure, and position within the company all play a role in how a person influences the buying process.
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- Consumers will often buy on emotion or impulse whereas businesses will buy based on need.
- Because consumers often buy on emotion, ads can affect the buying decision.
- Consumer products are often advertised on television in a way that tries to create an emotional tie with the buyer.
- Sometimes the type of product will make a difference in the buying decision.
- This is why companies can influence what type of car a person will buy, but not when they will buy one.
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- A buying center is a group of people within an organization who make business purchase decisions.
- The stock market is an example of a buying center.
- Many people are involved in the daily transactions and the purchase decisions both on the buying side and the selling side.
- In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned group with specific mandates, criteria, and procedures.
- In a generic sense, there are typically six roles within buying centers.
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- The purchasing process is different in both cases and the following is a list of the stages involved in B2B buying:
- Results become feedback for other stages in future business purchasing decisions
- Understanding the stages of business buying and the nature of customers' buying behavior is important to a marketing firm if it is to market its product properly.
- In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased.
- Buying B2B products is much riskier.
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- Then the Fed buys or sells to the dealers with the best offer.
- For example, the banks' reserves fall, as people withdraw money from their bank accounts to buy presents at Christmas or when people pay their taxes in April.
- Second, the Fed uses the Federal Reserve repurchase agreement (REPO) to buy securities from a dealer, and the dealer agrees to repurchase the securities for a specific price and on a particular date in the future.
- Thus, the reserve REPO temporarily lowers excess reserves in the banking system.
- The Fed can influence bank reserves by a little amount by buying few U.S. government securities or by a large amount by buying many securities.
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- The university bookstore determined 20% of enrolled students do not buy either book, 55% buy the textbook only, and 25% buy both books, and these percentages are relatively constant from one term to another.
- Around 20 students will not buy either book (0 books total), about 55 will buy one book (55 books total), and approximately 25 will buy two books (totaling 50 books for these 25 students).
- About 55 students will just buy a textbook, providing revenue of $137 × 55 = $7,535
- The roughly 25 students who buy both the textbook and the study guide would pay a total of ($137 + $33) × 25 = $170 × 25 = $4,250
- Hopefully Chapter 1 helped make clear that there is natural variability in observed data.
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- During the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product.
- Alternatively, they may also decide that they want to make the purchase at some point in the near or far future perhaps because the price point is above their means or simply because they might feel more comfortable waiting.
- The purchase decision is the fourth stage in the consumer decision process and when the purchase actually takes place.
- From whom they should buy, which is influenced by price point, terms of sale, and previous experience with or awareness of the seller and the return policy.
- Alternatively, they may also decide that they want to make the purchase at some point in the near or far future perhaps because the price point is above their means or simply because they might feel more comfortable waiting.