Webster and Wind Model
Content
Organizational Buying Processes and Buying Behavior
Marketing Management Article Series
Organization buying is the decision-making process by which formal organizations establish
the need for purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers.
____________________________________________________________________
Organization buying is the decision-making process by which formal organizations establish
the need for purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers. (Webster and Wind)
Some of the characteristics of organizational buyers are:
1. Consumer market is a huge market in millions of consumers where organizational buyers
are limited in number for most of the products.
2. The purchases are in large quantities.
3. Close relationships and service are required.
4. Demand is derived from the production and sales of buyers.
5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in
demand for their products.
6. The organizational buyers are trained professionals in purchasing.
7. Several persons in organization influence purchase.
8. Lot of buying occurs in direct dealing with manufacturers.
Organizational Buying Situations
Straight rebuy
In this buying situation, only purchasing department is involved. Thet get an information
from inventory control department or section to reorder the material or item and they seek
quotations from vendors in an approved list.
The "in-suppliers" make efforts to maintain product and service quality. The "out-suppliers"
have to make efforts to get their name list in the approved vendors' list and for this purpose
they have to offer something new or find out any issues of dissatisfaction with current
suppliers and promise to provide better service.
Modified rebuy
In this buying situation, there is a modification to the specifications of the product or
specifications related to delivery. Executives apart from the purchasing department are
involved in the buying decisions. The company is looking for additional suppliers or is ready
to modify the approved vendors list based on the technical capabilities and delivery
capabilities.
New task buy
In this situation, the buyer is buying the product for the first time. As the cost of the product
or consumption value becomes higher, more number of executives are involved in the
process. The stages of awareness, interest, evaluation, trial, and adoption will be there for the
products of each potential supplier. Only the products which pass all the stages will be on the
approved list and price competition will follow subsequently.
Systems buy
Systems buying is a process in which the organization gives a single order to a single
organization for supplying a full system. The buying organization knows that no single party
is producing all the units in the system. But it wants the system seller to engineer the system,
procure the units from various vendors and assemble, fabricate or construct the system.
Participants in the Business Buying Process
Buying Center Concept
Webster and Wind in the model they proposed to describe organizational buying process,
identified the organizational buying process as a team process and called the team or the
buying decision-making unit of the organization as buying center. The buying center consists
of all persons of the organizations who are involved in the buying process playing one or the
other seven roles: Initiators, Users, Influencers, Deciders, Approvers, Buyers, and
Gatekeepers.
Users
The persons who use the item. Say for safety gloves the operators.
Initiators
The persons who request the purchase. The safety officer may initiate the request for the
purchase.
Influencers
Persons who held define specifications. In this case of safety gloves, the safety officer may
himself define specifications. If an industrial engineer is in the organization, he may also be
consulted. There can a different gloves for different working situations and industrial
engineer may be more aware of specific requirements due to his special nature of work human effort engineering.
Buyers
They are the person who actually do the buying transaction.
Gatekeepers
They control access to personnel in a company. The receptionist, the secretaries etc.
Deciders
People who decide on product requireements and suppliers. It is the final approval for
product specfications and suppliers' list.
Approvers
Persons who approve the purchase. In the case of safety gloves, the personal manager may
have the power to approve.
Major Influences on Business Buyers
Environmental factors
Expected demand for the product that the buying organization is selling, expected shortages
for the item, expected changes in technology related to the item etc. are the environmental
factors that will have an effect.
Organizational factors
Changes in purchasing department organization like centralized purchasing, decentralized
purchasing and changes in purchasing practices like long-term contracts, relationship
purchasing, zero-based pricing, vendor-performance evaluation are the organization factors of
importance to marketers.
Interpersonal factors
These factors are the relationship between buyers and sales representatives of various
competitor companies.
Individual factors
These factors related to the buyer. What sort of ways of interacting and service are
appreciated by the buyers and what ways are considered as irritants? Marketers have to
understand the reactions of buyers.
Organizational Buying/Purchasing/Procurement Process
Steps in the Process
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Supplier performance review
References
Philip Kotler, Marketing Management, 9th Edition
Marketing Management Article Series
Organization buying is the decision-making process by which formal organizations establish
the need for purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers.
____________________________________________________________________
Organization buying is the decision-making process by which formal organizations establish
the need for purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers. (Webster and Wind)
Some of the characteristics of organizational buyers are:
1. Consumer market is a huge market in millions of consumers where organizational buyers
are limited in number for most of the products.
2. The purchases are in large quantities.
3. Close relationships and service are required.
4. Demand is derived from the production and sales of buyers.
5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in
demand for their products.
6. The organizational buyers are trained professionals in purchasing.
7. Several persons in organization influence purchase.
8. Lot of buying occurs in direct dealing with manufacturers.
Organizational Buying Situations
Straight rebuy
In this buying situation, only purchasing department is involved. Thet get an information
from inventory control department or section to reorder the material or item and they seek
quotations from vendors in an approved list.
The "in-suppliers" make efforts to maintain product and service quality. The "out-suppliers"
have to make efforts to get their name list in the approved vendors' list and for this purpose
they have to offer something new or find out any issues of dissatisfaction with current
suppliers and promise to provide better service.
Modified rebuy
In this buying situation, there is a modification to the specifications of the product or
specifications related to delivery. Executives apart from the purchasing department are
involved in the buying decisions. The company is looking for additional suppliers or is ready
to modify the approved vendors list based on the technical capabilities and delivery
capabilities.
New task buy
In this situation, the buyer is buying the product for the first time. As the cost of the product
or consumption value becomes higher, more number of executives are involved in the
process. The stages of awareness, interest, evaluation, trial, and adoption will be there for the
products of each potential supplier. Only the products which pass all the stages will be on the
approved list and price competition will follow subsequently.
Systems buy
Systems buying is a process in which the organization gives a single order to a single
organization for supplying a full system. The buying organization knows that no single party
is producing all the units in the system. But it wants the system seller to engineer the system,
procure the units from various vendors and assemble, fabricate or construct the system.
Participants in the Business Buying Process
Buying Center Concept
Webster and Wind in the model they proposed to describe organizational buying process,
identified the organizational buying process as a team process and called the team or the
buying decision-making unit of the organization as buying center. The buying center consists
of all persons of the organizations who are involved in the buying process playing one or the
other seven roles: Initiators, Users, Influencers, Deciders, Approvers, Buyers, and
Gatekeepers.
Users
The persons who use the item. Say for safety gloves the operators.
Initiators
The persons who request the purchase. The safety officer may initiate the request for the
purchase.
Influencers
Persons who held define specifications. In this case of safety gloves, the safety officer may
himself define specifications. If an industrial engineer is in the organization, he may also be
consulted. There can a different gloves for different working situations and industrial
engineer may be more aware of specific requirements due to his special nature of work human effort engineering.
Buyers
They are the person who actually do the buying transaction.
Gatekeepers
They control access to personnel in a company. The receptionist, the secretaries etc.
Deciders
People who decide on product requireements and suppliers. It is the final approval for
product specfications and suppliers' list.
Approvers
Persons who approve the purchase. In the case of safety gloves, the personal manager may
have the power to approve.
Major Influences on Business Buyers
Environmental factors
Expected demand for the product that the buying organization is selling, expected shortages
for the item, expected changes in technology related to the item etc. are the environmental
factors that will have an effect.
Organizational factors
Changes in purchasing department organization like centralized purchasing, decentralized
purchasing and changes in purchasing practices like long-term contracts, relationship
purchasing, zero-based pricing, vendor-performance evaluation are the organization factors of
importance to marketers.
Interpersonal factors
These factors are the relationship between buyers and sales representatives of various
competitor companies.
Individual factors
These factors related to the buyer. What sort of ways of interacting and service are
appreciated by the buyers and what ways are considered as irritants? Marketers have to
understand the reactions of buyers.
Organizational Buying/Purchasing/Procurement Process
Steps in the Process
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Supplier performance review
References
Philip Kotler, Marketing Management, 9th Edition
