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READING 3: Presented By:- Ruchika WardhanSuruchi AgarwalMobashir AhmadSushant Saurav

Many ppl involved in buying decisionWebster said, personal needs for recognition; social needs are crucial factors in decision making process.Selective exposure, selective attention, selective retention and convictionHigh risk- when decision affects othersLow Risk- no change for product specifications etc Different units have different parameters

Purchasing measurementKeep it running: On-time deliveriesBuying at favourable prices: Negotiates acceptable pricesConforms to purchasing norms: taking bribes from supplier, assurance of competition, conformance to corporate policies and administrative procedures etcManaging purchasing overheadsProcurement team is the following for good price performance: can ask for lower than lowest bid, ask to refrain from increasing pricesInfluences of functional role in buying decision makingWhat will be the product specification?Will we make it or buy it?What vendors are qualified to supply it?Engineering influence, marketing influences and general marketing influencesProcurement itself as an influenceEgo factor: ego needs of buyer and user

Procurement Organizations: purchasing takes place at multiple points in the structure.Centralised vs localised purchasing function: Commonality of requirements: two or more locations having common requirement, Cost saving potential, nature of supply requirement and supplier of customer/relation Influences of organizational purchasing on buyers behavior Negotiating processPreserving options: To have options wide openInformationBuilding