Buying behavior and the buying process

Buying behavior and the buying process

1. The action of buying is mainly caused by the need people to have for solving a problem or satisfying an impulse/desire. At a company selling area, the main team's responsibility is to be perfectly aware of what they are selling and what is the pain they try to solve for offering the product/service to potential customers.

   • Why do people buy?

2. Types of customers

   • In business, there are different types of customers and each of them acts and behaves differently according to their specific needs and process to buy. These are:
     • 1.- Manufacturers: They buy their products and services for manufacturing tertiary objects and sell them to customers.
       • 2.- Resellers: They buy already finished goods and services with the intention of reselling them to a tertiary business or consumer. Reselling goods take in consideration 3 main factors: ROI, Turnover and profit margin.
         • 3.- Government agencies: Buyers typically develop detailed specifications for a product and then invite qualified suppliers to submit bids.
           • 4.- Institutions: Public and private institutions such as churches, hospitals, and colleges. Often, these institutions have specific rules and procedures for buying their goods and services.
             • 5.- Customers: People who purchase goods and services for use by themselves or their relatives.
       • OEM PURCHASES: Original Equipment Manufacturers purchase goods to use in making their products. A seller of these must demonstrate and prove that they will be useful and efficient for the company's manufacturing processes.
       • End users: When manufacturers buy goods and services to support their own production and operations, they are acting as end users.

3. Organizational Buying process

   • This process is much complex and larger than the traditional buying process. Organizations train their buyers for making these decisions. It involves lots of steps and processes, since an extensive evaluation, deep benchmarking and negotiations over time. The complexity of organizational selling is increasing as more customers become global businesses.

4. How do organizations make buying decitions?

   • Recognizing a need or a problem: The buying process starts when someone realizes that there is a problem to be solved.
     • Define the type of product needed: Organization members develop a general approach to solving it.
       • Developing product specifications: Specifications must be prepared at this step. Potential suppliers will use this specifications for develop proposals.
         • Searching for qualified suppliers: The consumer looks for potential suppliers. It could be either contacting a previous one or having an intensive search for someone.
           • Acquiring and Analyzing Proposals: After the intensive search for suppliers, they will be asked to submit their respective proposals.
             • Evaluating proposals and selecting a supplier: Customer evaluates each proposal and decide whether to take someone's or preparing another for further negotiations.
               • STEP 6
               • Placing an order and receiving the product: An order is already placed with the selected supplier. He receives the order and commits to a delivery day with the buyer. After it is already shipped, the buyer signs of products receivement.
                 • STEM 7
                 • Evaluating products performance: At this step, the products' performance is evaluated. Both, the seller and the products are evaluated to determine is there was a proper service and products' performance. This step is critical for further negotiations and long term relations
                   • STEP 8
             • STEP 5
           • STEP 4
         • STEP 3
       • STEP 2
     • STEP 1