Knowledge

Buying center

Source 📝

184: 170:"some studies have shown that participation and influence do vary according to the buygrid framework ... but other studies have shown that they do not". Co-author Yoram Wind, looking back at the Buygrid Model 25 years after its publication, held that the model had provided "a very useful framework" whose "underlying dimensions valid", but "its generalizability under a variety of market situations not yet completely understood". 117:
group, but in other cases, it is a formally sanctioned group with a specific mandate. American research undertaken by McWilliams in 1992 found out that the mean size of a buying center mainly consisted of four people. The range in this research was between three and five people. The type of purchase
169:
s "Buygrid Framework" saw new task activities, dealing with a problem which has not arisen before, as more complex than the other buy classes, and closer to achieving a general solution applicable in future rebuy activities. McQuiston in 1989 noted mixed empirical findings regarding the framework:
361:
Robinson, P. J., C. W. Farris, and Y. Wind (1967), Industrial Buying and Creative Marketing, Boston, MA: Allyn and Bacon, quoted in Wesley J. Johnston and Thomas V. Bonoma, "The Buying Center: Structure and Interaction Patterns" in Journal of Marketing, Vol. 45, No. 3 (Summer, 1981), pp. 143-156,
148:
and product search: this process contains the search for suppliers that can meet a company's product or service needs. First a supplier that matches with the specifications of the company has to be found. The second condition is that the supplier can satisfy the organizations financial and supply
345:
The buying center is sometimes referred to as the decision making unit (DMU) or buying group. The buying center or decision making unit is a useful tool which answers the question—Who are involved in buying decision in an industrial organization? It is defined as a body of all the individuals or
287:(SMEs). Thompson and Panayiotopoulos suggest that some purchasing decisions in SMEs, especially in a rebuy context, are made by one person and therefore not really a "group" activity, although in a new-buy situation, " the influence of other people may be greater". 134:
Need or problem recognition: the recognition can start for two reasons. The first reason can be to solve a specific problem of the company. The other reason can be to improve a company's current operations/performance or to pursue new
57:(1967). A DMU consists of all the people of an organization who are involved in the buying decision. The decision to purchase involves those with purchasing and financial expertise; those with technical expertise, and of course the 238:
may differ from or may shape the structure of the buying center and examining how a particular buying strategy may serve to mediate the effects of environmental uncertainty on the structure of the buying center.
118:
that has to be done and the stage of the buying process influence the size. More recent research found that the structure, including the size, of buying centers depends on the
155:
Selection of order routine: this stadium starts after the selection of the supplier. It mainly consists of negotiating and agreeing with the supplier about certain details.
214:
There are several conceptual and methodological issues concerning buying centers which in 1986 were thought to need additional research. These issues can be divided into:
162:
In this process of making decisions different roles can be given to certain members of the center of the unit depending on the importance of the part of the organization.
259:
One stream of research focuses on the number of decision phases and their timing and the other emphasizes the type of decision-making model (or choice routine) utilized.
61:. McDonald, Rogers and Woodburn (2000) state that identifying and influencing all the people involved in the buying decision is a prerequisite in the process of 142:
Determining product specification: The specification includes the peculiarities which the product/service that is going to be purchased must contain.
152:
Evaluation of proposals and selection of suppliers: the different possible suppliers will be evaluated by the different departments of the company.
432: 195:. The reason given is: This section should cover buying center research (if any) undertaken since 1986, which may have addressed these issues. 433:
The role of information technology adoption in the globalization of business buying behavior: a conceptual model and research propositions
559: 224:
Distinguishing the buying center from its environment, also defining and delimiting the activities of a particular buying center.
515:
Wood, John "Andy" (October 2005). "Organizational configuration as an antecedent to buying centers' size and structure".
284: 103: 99:. classified "buy classes" as "straight rebuy", "modified rebuy" or "new task", also referred to as "new task buying". 460: 330: 130:
When the DMU wants to purchase a certain product or service the following steps are taken inside the buying center:
648: 572:
Spekman, Robert E.; Kjell, Gronhaug (July 1986). "Conceptual and methodological issues in buying centre research".
615:
Thompson, K.E. and Panayiotopoulos, P. (1999), "Predicting behavioural intention in a small business context",
419: 84:
value and influence in organisational efficiency and effectiveness) formulates the understanding of purchasing
643: 17: 158:
Performance feedback and evaluation: performance and quality of the purchased goods will be evaluated.
283:
noted in 2005 that very little academic discussion had taken place regarding buyer behaviour within
235: 119: 347: 43: 322: 653: 74: 8: 145: 122:, with centralization and formalization driving the development of large buying centers. 197:
Please help update this article to reflect recent events or newly available information.
543:
Novelty, Complexity, and Importance as Causal Determinants of Industrial Buyer Behavior
136: 54: 58: 497: 493: 456: 415: 380: 336: 326: 620: 581: 524: 489: 91:
Some of the key factors influencing a buying center or DMU's activities include:
85: 455:(7th ed.). Maidenhead, UK: McGraw-Hill Higher Education. pp. 162–165. 450: 606:, University of Portsmouth Working Paper Series, published on 13 September 2005 47: 528: 637: 624: 585: 501: 340: 599: 296: 280: 317:
Havaldar, Krishna K. (2005). "Buying centre (or decision making unit)".
542: 384: 77: 477: 81: 53:
The concept of a DMU was developed in 1967 by Robinson, Farris and
102:
Product type (e.g. materials, components, plant and equipment, or
269:
The informal interactions that emerge during the buying process.
321:(2nd ed.). New Delhi: Tata McGraw-Hill Education. p.  350:
and who have interdependent objectives and share common risks.
62: 604:
Buyer behaviour in SMEs: Research sponsored by DocumentGENie
448: 476:
McWilliams, Robert D.; Naumann, Earl; Scott, Stan (1992).
617:
Journal of Marketing Practice: Applied Marketing Science
549:, Vol. 53, April 1989, p. 66, accessed on 20 August 2024 475: 400: 299:- formalised organizational procedures for purchasing 95:
Buy class. The "Buygrid" model developed by Robinson
249:
Power and conflict issues within the buying center.
173: 562:, published April 1996, accessed 13 September 2023 449:Jobber, David; Ellis-Chadwick, Fiona (2013). "5". 374: 218:Buying center boundaries and buying center domain 635: 273:Application to small and medium-sized businesses 401:McDonald, M.; Rogers, B.; Woodburn, D. (2000). 113:In some cases the buying center is an informal 517:Journal of Business & Industrial Marketing 73:The concept of a buying center (as a focus of 439:, 22/4, 2007, p. 223, accessed 18 August 2023 375:Robinson, P.; Faris, Y.; Wind, C. W. (1967). 571: 437:Journal of Business and Industrial Marketing 403:Key customers: How to Manage them Profitably 42:), brings together "all those members of an 68: 125: 377:Industrial buying and creative marketing 316: 243:Process considerations in buying center 14: 636: 50:for a particular product or service". 452:Principles and Practices of Marketing 396: 394: 370: 368: 514: 379:. United States: Allyn & Bacon. 319:Industrial marketing: text and cases 177: 80:, and as a core factor in creating 24: 391: 365: 285:small and medium-sized enterprises 104:maintenance, repair and operations 25: 665: 560:The BuyGrid Model: 25 Years Later 478:"Determining buying center size" 405:. Oxford: Butterworth-Heinemann. 182: 174:Issues in buying center research 609: 592: 565: 552: 535: 482:Industrial Marketing Management 508: 469: 442: 425: 409: 355: 310: 13: 1: 574:European Journal of Marketing 303: 627:, accessed on 21 August 2024 558:Wind, Y. and Thomas, R. J., 494:10.1016/0019-8501(92)90032-O 346:groups participating in the 7: 619:, Vol. 5 No. 3, pp. 89-96, 431:Roy, S. and Sivakumar, K., 290: 46:who become involved in the 10: 670: 109:Importance of the purchase 529:10.1108/08858620510618101 191:This section needs to be 88:in complex environments. 625:10.1108/EUM0000000004564 586:10.1108/EUM0000000004656 362:accessed 6 December 2015 236:organizational structure 120:organizational structure 69:Modelling buying centers 649:Organizational behavior 348:buying decision process 228:Buying center structure 126:Decision-making process 27:Organizational behavior 422:, accessed 11 May 2023 644:Business-to-business 547:Journal of Marketing 137:market opportunities 75:business-to-business 36:decision-making unit 263:Communications flow 541:McQuiston, D. H., 234:Understanding how 416:Monash University 212: 211: 16:(Redirected from 661: 628: 613: 607: 598:Andrews, T. and 596: 590: 589: 569: 563: 556: 550: 539: 533: 532: 512: 506: 505: 473: 467: 466: 446: 440: 429: 423: 413: 407: 406: 398: 389: 388: 372: 363: 359: 353: 352: 314: 207: 204: 198: 186: 185: 178: 21: 669: 668: 664: 663: 662: 660: 659: 658: 634: 633: 632: 631: 614: 610: 597: 593: 570: 566: 557: 553: 540: 536: 513: 509: 474: 470: 463: 447: 443: 430: 426: 414: 410: 399: 392: 373: 366: 360: 356: 333: 315: 311: 306: 293: 253:Decision making 208: 202: 199: 196: 187: 183: 176: 128: 86:decision-making 71: 28: 23: 22: 15: 12: 11: 5: 667: 657: 656: 651: 646: 630: 629: 608: 591: 564: 551: 534: 523:(6): 263–275. 507: 468: 461: 441: 424: 408: 390: 364: 354: 331: 308: 307: 305: 302: 301: 300: 292: 289: 277: 276: 274: 267: 266: 264: 257: 256: 254: 247: 246: 244: 232: 231: 229: 222: 221: 219: 210: 209: 203:September 2023 190: 188: 181: 175: 172: 160: 159: 156: 153: 150: 143: 140: 127: 124: 111: 110: 107: 100: 70: 67: 59:top management 48:buying process 34:, also called 26: 9: 6: 4: 3: 2: 666: 655: 652: 650: 647: 645: 642: 641: 639: 626: 622: 618: 612: 605: 601: 595: 587: 583: 579: 575: 568: 561: 555: 548: 544: 538: 530: 526: 522: 518: 511: 503: 499: 495: 491: 487: 483: 479: 472: 464: 462:9780077140007 458: 454: 453: 445: 438: 434: 428: 421: 417: 412: 404: 397: 395: 386: 382: 378: 371: 369: 358: 351: 349: 342: 338: 334: 332:9780070588400 328: 324: 320: 313: 309: 298: 295: 294: 288: 286: 282: 275: 272: 271: 270: 265: 262: 261: 260: 255: 252: 251: 250: 245: 242: 241: 240: 237: 230: 227: 226: 225: 220: 217: 216: 215: 206: 194: 189: 180: 179: 171: 168: 163: 157: 154: 151: 149:requirements. 147: 144: 141: 138: 133: 132: 131: 123: 121: 116: 108: 105: 101: 98: 94: 93: 92: 89: 87: 83: 79: 76: 66: 64: 60: 56: 51: 49: 45: 41: 37: 33: 32:buying center 19: 18:Buying centre 616: 611: 603: 594: 580:(7): 50–63. 577: 573: 567: 554: 546: 537: 520: 516: 510: 488:(1): 43–49. 485: 481: 471: 451: 444: 436: 427: 411: 402: 376: 357: 344: 318: 312: 279:Andrews and 278: 268: 258: 248: 233: 223: 213: 200: 192: 166: 164: 161: 129: 114: 112: 96: 90: 72: 52: 44:organization 39: 35: 31: 29: 654:Procurement 420:Buy classes 297:Procurement 638:Categories 600:Rogers, B. 385:B0006BRX3A 304:References 502:0019-8501 165:Robinson 78:marketing 602:(1967), 341:60574619 291:See also 146:Supplier 82:customer 193:updated 167:et al.' 500:  459:  383:  339:  329:  281:Rogers 115:ad hoc 106:(MRO) 97:et al 63:sales 498:ISSN 457:ISBN 381:ASIN 337:OCLC 327:ISBN 55:Wind 621:doi 582:doi 525:doi 490:doi 40:DMU 640:: 578:20 576:. 545:, 521:20 519:. 496:. 486:21 484:. 480:. 435:, 418:, 393:^ 367:^ 343:. 335:. 325:. 323:43 65:. 30:A 623:: 588:. 584:: 531:. 527:: 504:. 492:: 465:. 387:. 205:) 201:( 139:. 38:( 20:)

Index

Buying centre
organization
buying process
Wind
top management
sales
business-to-business
marketing
customer
decision-making
maintenance, repair and operations
organizational structure
market opportunities
Supplier
organizational structure
Rogers
small and medium-sized enterprises
Procurement
43
ISBN
9780070588400
OCLC
60574619
buying decision process


ASIN
B0006BRX3A

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.