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 213

Questions and Problems

1. In your own words, explain how buying behavior of
   business customers in different countries may have
   been a factor in speeding the spread of international
   marketing.


2. Compare and contrast the buying behavior of final
   consumers and organizational buyers. In what ways
   are they most similar and in what ways are they
   most different?


3. Briefly discuss why a marketing manager should think
   about who is likely to be involved in the buying cen-
   ter for a particular purchase. Is the buying center idea
   useful in consumer buying? Explain your answer.


4. If a nonprofit hospital were planning to buy expen-
   sive MRI scanning equipment (to detect tumors),
   who might be involved in the buying center? Ex-
   plain your answer and describe the types of
   influence that different people might have.


5. Describe the situations that would lead to the use of
   the three different buying processes for a particular
   product—lightweight bumpers for a pickup truck.


6. Why would an organizational buyer want to get
   competitive bids? What are some of the situations
   when competitive bidding can’t be used?


7. How likely would each of the following be to use
   competitive bids: (a)a small town that needed a
   road resurfaced, (b)a scouting organization that
   needed a printer to print its scouting handbook, (c)
   a hardware retailer that wants to add a new lawn
   mower line, (d)a grocery store chain that wants to
   install new checkout scanners, and (e)a sorority
   that wants to buy a computer to keep track of mem-
   ber dues? Explain your answers.
   8. Discuss the advantages and disadvantages of just-in-
   time supply relationships from an organizational
   buyer’s point of view. Are the advantages and dis-
   advantages merely reversed from the seller’s point of
   view?
   9. Explain why a customer might be willing to work
   more cooperatively with a small number of suppliers
   rather than pitting suppliers in a competition
   against each other. Give an example that illustrates
   your points.


8. Would a tool manufacturer need a different market-
   ing strategy for a big retail chain like Home Depot
   than for a single hardware store run by its owner?
   Discuss your answer.


9. How do you think a furniture manufacturer’s buying
   habits and practices would be affected by the spe-
   cific type of product to be purchased? Consider
   fabric for upholstered furniture, a lathe for the pro-
   duction line, cardboard for shipping cartons, and
   lubricants for production machinery.


10. Discuss the importance of target marketing when ana-
    lyzing organizational markets. How easy is it to isolate
    homogeneous market segments in these markets?


11. Explain how NAICS codes might be helpful in
    evaluating and understanding business markets.
    Give an example.


12. Considering the nature of retail buying, outline the
    basic ingredients of promotion to retail buyers. Does
    it make any difference what kinds of products are
    involved? Are any other factors relevant?

are not an all-or-nothing thing. There are different ways

that a supplier can build a closer relationship with its

customers. We identified key dimensions of relationships

and their benefits and limitations.

We also looked at how buyers use e-commerce in the

buying process. Some capabilities, like interactive com-

petitive bidding, have already had a major impact. And

much progress is underway toward fostering more effi-

cient relationships.

The chapter focuses on aspects of buying behavior

that often apply to different types of organizational cus-

tomers. However, we discussed some key differences in

the manufacturer, services, middleman, and government

markets.

A clear understanding of organizational buying

habits, needs, and attitudes can aid marketing strategy

planning. And since there are fewer organizational cus-

tomers than final consumers, it may even be possible for

some marketing managers (and their salespeople) to de-

velop a unique strategy for each potential customer.

This chapter offers some general principles that are

useful in strategy planning—but the nature of the prod-

ucts being offered may require adjustments in the plans.

Different product classes are discussed in Chapter 9.

Variations by product may provide additional segment-

ing dimensions to help a marketing manager fine-tune a

marketing strategy.