Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

7. Business and
   Organizational Customers
   and Their Buying Behavior

Text © The McGraw−Hill

Companies, 2002

Business and Organizational Customers and Their Buying Behavior 185

Manufacturers

Farms, fisheries, forestry,

mining operations,

construction firms

Financial institutions—

insurance, banks, real estate

Other service providers—

transportation firms, utilities,

hotels, lawyers, doctors

Wholesalers

Retailers

Federal agencies (U.S. and other

countries)

State and local governments

National organizations (such as

Red Cross, Girl Scouts)

Local organizations (such as

churches, colleges, museums)

Producers of

goods and

services

Government

units

Nonprofit

organizations

All business Middlemen

and

organizational

customers

Exhibit 7-1

Examples of Different Types

of Business and

Organizational Customers

goods or services. A wholesaler or retailer buys products it can profitably resell to

its customers. A town government wants to meet its legal and social obligations to

citizens. Similarly, a country club wants to help its members enjoy their leisure time.

Organizational buyers typically focus on economic factors when they make pur-

chase decisions. They are usually less emotional in their buying than final

consumers.

Buyers try to consider the total cost of selecting a supplier and its particular mar-

keting mix, not just the initial price of the product. For example, a hospital that

needs a new type of X-ray equipment might look at both the original cost and ongo-

ing costs, how it would affect doctor productivity, and of course the quality of the

images it produces. The hospital might also consider the seller’s reliability and gen-

eral cooperativeness; the ability to provide speedy maintenance and repair, steady

supply under all conditions, and reliable and fast delivery; and any past and present

relationships (including previous favors and cooperation in meeting special requests).

The matter of dependability deserves further emphasis. An organization may not

be able to function if purchases don’t arrive when they’re expected. For example,

Basic purchasing

needs are economic