CH 7: Business Markets and Business Buyer Behaviour
Business Buyer Behaviour- the buying behaviour of the organizations that buy goods and services for use in
the production of other products and services or to resell or rent to others at a profit.
o Retailing and wholesaling
Business Buying Process- the decision process by which business buyers determine which products and
services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers
Differences between business markets and consumer markets
o Market Structure and Demand
Business markets contain fewer but larger buyers
Business buyer demand is derived from final consumer demand
Demand in many business markets is more inelastic- not affected as much in the short run by
Demand in business markets fluctuates more, and more quickly
o Nature of Buying Unit
Business purchases involve more buyers
Business buying involves a more professional purchasing effort
o Types of Decisions and the Decision Process
Business buyers usually face more complex buying decisions
The business buying process is more formalized
In business buying, buyers and sellers work more closely together and build close, long-term
Derived Demand- business demand that ultimately comes from (derives from) the demand for consumer
Supplier Development- Systematic development of networks of supplier-partners to ensure an appropriate and
dependable supply of products and materials for use in making products or reselling them to others.
3 types of buying situations:
o Straight rebuy- a business situation in which the buyer routinely reorders something without any
o Modified rebuy- a business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers.
More decision participants
o New Task- A business buying situation in which the buyer purchases a product or service for the first
Greater the cost or risk, the larger the number of decision participants and the greater their
efforts to collect information
Systems Selling (solutions selling)- Buying a packaged solution to a problem from a single seller, thus
avoiding all the separate decisions involved in a complex buying situation
Buying Centre- All the individuals and units that play a role in the purchase decision-making process.
o Users- members of the buying organization who will actually use the purchased product or service.
o Influencers- People in an organization’s buying centre who affects the buying decision’ they often
help define specifications and also provide information for evaluating alternatives. I.e. technical
o Buyers- People in the organization’s buying centre who make an actual purchase. o Deciders- People in the organization’s buying centre who have formal or informal power to select or
approve the final suppliers
o Gatekeepers- People in the organization’s buying centre that control the flow of information to others.
Major Influences on Business Buyers economic factors and personal factors.
Business Buying Process:
o Problem Recognition- the first stage of the business buying process in which someone in the company
recognizes a problem or need that can be met by acquiring a good or a service.