In a buying center, purchasing agents or purchasing managers are also known as

Consumer Behaviour- The Buying Center 

  • A buying centre notion is prevalent in many company purchase decisions.
  • Individuals that participate in the buying centre perform a variety of responsibilities, though it is typically not a formal group.
  • There can be more than one person in each position, and one can play multiple roles.

Keywords: Consumer behaviour-Buying center-Members of buying center-Users-Buyers-Influencers-Deciders-Gatekeepers

Members of Buying Center 

  1. Users
  • They are the members of the organisation that actually use the good or service. 
  • It is the responsibility of one or more users to take the initiative in an endeavour to enhance what they create or how they produce it, and they are also in charge of putting what they have acquired into practice.
  • Users often have certain specifications in mind for products and how they want them to perform.

2. Buyers 

  • Are the individual who has former responsibility for making the purchase. 
  • They can significantly impact a company’s costs, sales, and profitability.

3. Influencers 

  • Individuals shape the decision by providing information or criteria used in the decision process. 
  • Influencers are those who, despite not necessarily using the goods, have knowledge or skills that can improve the purchasing decision.

4. Deciders 

  • Deciders are people who authorize purchase decisions. 
  • The buying manager may or may not make the decision.
  • Routine and modest purchases are typically made only after consulting with purchasing managers.

SimpleStudying Advice: However, it’s likely that other members of the organisation, possibly even the CEO, will decide to buy a large, expensive product that will have a significant impact on the business.

5. Gatekeepers 

  • Gatekeepers control the flow of information to members of the buying centre.
  • Marketing to a business involves understanding these roles and locating the individuals within a business organization that have these roles.

SimpleStudying Advice: You will first need to go through a number of gatekeepers who will control whether and when you have access to buying centre participants. These are those who have some influence over which sellers can enter the entrance, such as buying assistants, personal assistants, and other people.

From CEOpedia | Management online

Buying center
See also
  • Staff authority
  • Media house
  • Warm Calling
  • Canvassing
  • Market mapping
  • Decision-maker
  • Tender document
  • Marketing information system
  • Selling away

Buying center consists of every person who is involved in an act of buying in a particular company. These people, for instance, might be the architect designing a new research facility, the scientist working in the laboratories or executives such as purchasing manager, chief executive officer or vice president of research. Every member of the buying center aims to satisfy their personal needs. Those needs may be need of participation or status. Formal organizational structure does not contain a buying center. Its composition and size may vary from transaction or company as its an informal group[1].

Roles in a buying center

Every participant of a buying center has an individual role, varying from each member[2][3]:

  • Initiator is the one who suggested purchasing a product in the first place.
  • Users are the people using the purchased product. Usually, they take part in initiating the purchase and define required specifications.
  • Gatekeeper is the one who controls flow of the information. For instance, this role may be taken by a purchasing agent or a secretary that determines who gets an appointment with a buyer.
  • Influencer also known as evaluator provides specifications and technical information. Influencers mostly consist of technical personnel.
  • Decider is the one responsible for choosing the product. It is usually difficult to appoint one specific person who made a particular decision.
  • Buyer or a purchaser is the one with the authority to purchase a product and negotiate details of the transaction. It might be a purchasing agent or even a president of the company, which depends on how important is a particular purchase.

Compositon of a buying center

How big of a role one person plays in a buying center may vary from one situation to another. The center may change because it adjusts to the current situation. Because purchase made by an organization is thought of as a process, not an individual event importance or rather an influence of certain people changes with time. For example, a design engineer plays a key role in the beginning, and later more influence is given to other individuals. Essentially, the overall composition of a buying center may depend on a company, specific transaction, or even a stage in which this transaction actually is[4].

Importance of a buying center

In the industrial markets, purchase decisions of buying centers play a key role. In order to provide the best marketing strategy for themselves sellers analyze roles and behaviors of buying centers. They identify members of a buying center, especially the quantity of them, their functions, spot in the company's hierarchy, and how much influence do they have. They are especially focused on the deciders. Thanks to that kind of analysis, it is easier for sellers to finalize a purchase transaction[5].

Footnotes

  1. Boone L., Kurtz D. (2008)
  2. Boone L., Kurtz D. (2008)
  3. Lamb C. W., Hair J. F., McDaniel C. (2008)
  4. Hutt M. D., Speh T. W. (2009)
  5. Gaggl M. (2014)

References

  • Boone L., Kurtz D. (2008), Contemporary marketing 2009 update, Cengage Learning, Boston, p. 199
  • Gaggl M. (2014), Relevance of buying center analysis in industrial markets Anchor Academic Publishing, Hamburg, p. 22-23
  • Hutt M. D., Speh T. W. (2009), Business marketing management: B2B, Cengage Learning, Boston, p. 79
  • Lamb C. W., Hair J. F., McDaniel C. (2008), Essentials of marketing, Cengage Learning, Boston, p. 194

Author: Kacper Klimek

What is the buying centre also known as?

A buying center, also called decision-making unit (DMU), brings together "all those members of an organization who become involved in the buying process for a particular product or service".

What is the difference between a purchasing agent and a purchasing manager?

Buyers and purchasing agents buy products and services for organizations to use or resell. They evaluate suppliers, negotiate contracts, and review the quality of products. Purchasing managers oversee the work of buyers and purchasing agents and typically handle more complex procurement tasks.

What is Gatekeeper in buying center?

Gatekeeper Controls the flow of information and access to buying center members, and usually executes the purchased product or service order. Users Utilizes or consumes the product or service. Technical Influencers Consults regarding technical issues.

Who are the members of the buying center?

The Buying Center - these are the typical roles.
Initiator..
Influencer..
Recommender..
Gatekeeper..
Decider..
Economic Buyer..