The Buy Grid Model Essay -- Business Administration

The buy grid model is a version of a theory developed as a general model of rational organizational design making, explaining how companies make decisions (Dwyer and Tanner, 2006). The buy-grid model has three components, which are: the buy-phases, the buy-class (buy situation) and the buying centres. The buy-phases Organizational buying behaviour can be described by using the buy-phases (Dwyer and Tanner, 2006) which helps in the explanation of the various steps that are involved in a typical organizational purchase decision making process. Step 1, need recognition: the organizational buying process is a form of problem solving resulting from a buying situation that is created when someone (the purchasing manager, the consulting manager or as regulatory requirement) in the organization recognizes a problem that can be solved through some buying action so that the discrepancy between a desired outcome and the prevailing situation can be resolved. Step 2, defining the product-type needed: the organization needs to identify the type of product/service that can help solve the problem. Step 3, developing detailed specifications: after defining the type of product or service that can be used to solve the problem, a detailed specification is drawn. Step 4, search for qualified suppliers: the organization needs to look for the information of supplier from the diverse channel such as Internet webpage, fairs, network associates, etc. Step 5, acquisition and analysis of proposals: after having all the information from the relevant suppliers, the organization should analyse the information according to their criteria and standard. Step 6, evaluation and selection of a supplier: the evaluation stage of the process could involve the p... ...ent: a select meta-analysis of organization buying behaviour research†. Journal of business research Olav Jull Sorensen (2009): â€Å"Formation, Organisation and Management of the (Global) Value Chain I a Theoretical Perspective† Philip Kotler; Kevin Lane Keller (2009): â€Å"Marketing Management†, 13th edition, Pearson Prentice Hall, pg 61-62 Robert, F. Dwyer, and John F. Tanner. (2006): â€Å"Business Marketing: connecting strategy, relationship and learning† McGraw-Hill Education, 3rd edition. Page 71 Schiffman, Leon G; Kanuk, Leslie Lazar; Hansen, Hà ¥vard (2008): â€Å"Consumer Behaviour A european outlook† Pearson Education limited Solomon, Michael R; Bamossy, Gary; Askegaard, Sà ¸ren; Hogg, Margaret K (2010): â€Å"Consumer Behaviour A European perspective† 4th edition. Svend Hollensen (2003): â€Å"Marketing Management a relationship approach†, FT Prentice Hall Financial Times, pg 9-10