organisation buying behaviour

KENESTIC, INC. : 

KENESTIC, INC. Group Member:- Brijlata verma Nitesh kumar Neha Agarwal Nidhi Jain Nishant kr. Pathak Pallavi

Summary : 

Summary Company deals in molded plastic product. Specialized in manufacturing and marketing of it. 15 to 20% price premium on the product. Objectives:- To produce value added product to the customer. Major thrust on Durability Resistance to breakage After sale support

Table-1Existing Customer : 

Table-1Existing Customer Attributes Importance in % Position

Table-2Non Customer : 

Table-2Non Customer

Slide 5: 

Application is breaking Or wear life a Problem? Availability Is kenestic Product Available? Productivity Does the Design match the Application? Price/value With kenestic Price do I get Economic Value? Availability Is kenestic Available? Price/value With kenestic Price do I get Economic Value? Yes (10%) Yes Yes Yes Yes Yes Yes No No No No No (25%) (30%) (75%) (70%) (90%) (5%) (75%) (70%) (25%) (30%) (95%) Buy Kenestic .0525 Don’t buy Kenestic .0175 Don’t buy Kenestic .03 Don’t buy Kenestic .675 Don’t buy Kenestic .0675 Don’t buy Kenestic .1496 Buy Kenestic .0079 Customer Decision Process Survey

Slide 6: 

Q.1 What are the limitation to looking at just customer or noncustomer ratings of purchase criteria? A- Major limitations:- 1. Without knowing the purchase decision criteria the survey has been conducted so, the result obtained in the survey are absolutely opposite. Buying Center Members: Users Deciders Influencers Buyers Gatekeepers

Major Influences on Business Buying : 

Major Influences on Business Buying Environmental Economic, Technological, Political, Competitive & Cultural Organizational Objectives, Policies, Procedures, Structure, & Systems Interpersonal Authority, Status, Empathy & Persuasiveness Individual Age, Education, Job Position, Personality & Risk Attitudes Buyers

Slide 8: 

Q.2 What additional benefits can be obtained by under-standing how purchase decisions are made? A-

Slide 9: 

Q.3 Where should Kenestic focus its efforts, and what would be the impact of these efforts? A- More focus on Availability, Price, Delivery, Product design In brief we can say “Add value with service offering to achieve a differentiating position.“

Characteristics of theThree Types of Buying Decisions : 

Characteristics of theThree Types of Buying Decisions

Slide 11: 

Q.4 Explain how Kenestic’s high price is offset in applications where wear life, breakge, and after-sale support are important. Also, explain why the economic value of the product is less attractive in applications where wear life and breakage are not a concern. A- It is the economics rule that for every sacrificed or spend unit of money consumer want to derive more and more utility and this can be possible only by comparing it on economic value parameter, therfore in the case The savings due to wear life, breakage, or after- sale support offset the premium price charged by the company. But where these three attributes are missing then consumer derived benefits are not being offseted by high price charged and consumer prefer low price product. This can be also understand by the table given in next slide

Buying Decision Process : 

Buying Decision Process Consumer satisfaction is a function of consumer expectations and perceived product performance. Performance < Expectations Disappointment Performance = Expectations Satisfaction Performance > Expectations Delight