2020_BEC_FlipBooks

F20_Castleberry_Selling11eFlipbook_11-6-20

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Organizational factors Economic criteria Quality criteria Service criteria Individual factors Needs of buying center members Personal risks Personal needs Buyer Exhibit 3.4 Factors Influencing Organizational Buying Decisions rational needs and emotional needs. 15 Rational needs are directly related to the performance of the product. Thus, the organizational needs discussed in the next section are examples of rational needs. Emotional needs are associated with the personal rewards and gratification of the person buying the product. Thus, the personal needs of buying center members often are considered emotional needs. In Building Partnerships 3.1 we compare how two salespeople catego- rize their buyers. Camille Sandler sells cutting-edge technology to doctors and categorizes them based on how quickly they are willing to adopt innovations, a categorization scheme based more on emotions, while Taylor Dixon sells a sim- pler product line and finds more rational purchasing motives driving sales. ORGANIZATIONAL NEEDS AND CRITERIA Organizations consider a number of factors when they make buying decisions, including economic factors such as price, product quality, and supplier service. In addition, organizations also consider strategic objectives, such as sus- tainability (choosing vendors and products that are good for the planet) and social diversity. Economic Criteria The objective of businesses is to make a profit. Thus, businesses are very concerned about buying products and services at the lowest cost. Organizational buyers are now taking a more sophisticated approach to evaluating the cost of equip- ment. Rather than simply focusing on the purchase price, they consider installation costs, the costs of needed acces- sories, freight charges, estimated maintenance costs, and operating costs, including forecasts of energy costs. Retail buyers also consider other financial factors, such as who pays for promotion plans—the retailer or the manufacturer. CHAPTER 3: Buying Behavior and the Buying Process 73

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