Business Buying Center sample essay
A.Describe the different roles in a business buying center. Then identify each member of the buying group in a medium-sized company that purchases components and assembles small household appliances. A business buying center is described as all persons involved in any aspect of a company’s buying activity (source: page 186, Contemporary Marketing). A business buying center is also known as a decision making unit or DMU and can be further defined as a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase (source: Financial Times Lexicon: http://lexicon.ft.com/decision-making-unit).
In a business setting, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management. Highly technical purchases, such as information systems or production equipment, also require the expertise of technical specialists. In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned group with specific mandates, criteria, and procedures.
The employees that constitute the buying center will vary depending on the item being purchased. There are typically five roles within any buying center. For purposes of this assignment, a buying center for a medium-sized company that purchases components and assembles small household appliances could be described as follows: 1.Influencers who try to affect the outcome decision with their opinions. An Influencer would also set specific buying specifications for the company. This group would guide evaluation as well. 2.Deciders who have the final decision. The Deciders also choose the good or service. They may need to involve another person with more formal authority 3.Buyers who are responsible for the contract. Buyers also secure the good or service. 4.Users of the item being purchased. Users are the people who will actually “use” the good or service. 5.Gatekeepers who control the flow of information that all buying center members will review.
(Sources: http://books.google.com/books?id=wAMsaLJoykYC&pg=PA130&lpg=PA130 and source: page 186 and 187, Contemporary Marketing)