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Search and Qualification Of Potential Sources Description of Item and Quantity Needed Determination Copyright 169。 2023 by Harcourt, Inc. 1 Phase One Recognition of the Problem or Need: The Needs Gap (Figure ) Desired State Produce 1,250 units/day Actual State Produce 1,000 units/day The Gap Or Need 250 units/day Copyright 169。 2023 by Harcourt, Inc. 1 Phase Two Determination of Characteristics of the Item and the Quality Needed Phase Three Description of Characteristics of the Item and the Quality Needed Phase Four Search for and Qualification of Potential Sources Copyright 169。 2023 by Harcourt, Inc. 1 Phase Five Acquisition and Analysis of Proposals MultiAttribute Model of Adhesives by GM Buyers E xh i b i t 2 .5W e i g h te d A v e r a g e s fo r P e r fo r m a n c e a n d O v e r a l l Ev a l u a ti o n S c o r e sC h a r a c t e r i s t i c s B o n d I t 3 0 2 A d C o 4 5 S ti k F a s t 2 1 7P I P* I P I P* I P I P* IQ u o t e d Pr i c e 5 10 50 9 10 90 7 10 70D u r a b i l i t y 6 9 54 8 9 72 9 9 81E a s e o f A p p l i c a t i o n 10 8 80 5 8 40 8 8 64S e r v i c e F a c t o r s 5 8 40 8 8 64 10 8 80R e l i a b i l i t y 8 7 56 10 7 70 5 7 35B o n d i n g T i m e 8 6 48 6 6 36 4 6 24N o n T o x i c 8 6 48 10 6 60 8 6 48S h e l f l i f e i n S t o r a g e 9 6 54 6 6 36 6 6 36O v e r a l l Ev a l u a ti o n S c o r e 430 468 438 P = Pr o d u c t Pe r f o r m a n c e S c o r e s I = R e l a t i v e I m p o r t a nc e o f C ha r a c t e r i s t i cCopyright 169。 2023 by Harcourt, Inc. 1 Phase Six Evaluation of Proposals and Selection of Supplier Phase Seven Selection of Order Routine Phase Eight Performance Evaluation and Feedback Copyright 169。 2023 by Harcourt, Inc. 1 (Figure ) Complex Mix of Business Buyer Needs Buyers Level of Satisfaction 63% Level of Influence On Buyers’ Satisfaction 37% Level of Influence On Buyers’ Satisfaction Psychological Attributes “ Delighters‖ Functional Attributes “ MustHaves‖ Copyright 169。 2023 by Harcourt, Inc. 1 Types of Purchasing Decisions Buying Situation ? Straight Rebuy Buying Situation – Routinized Response Behavior ? Modified Rebuy Buying Situation – Limited Problem Solving ? New Task Buying Situation – Extensive Problem Solving Copyright 169。 2023 by Harcourt, Inc. 1 Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit ) D EC I SI O N T Y PES t r a i g h t R e b u yN e w n e s s o f P r o b l e m o r N e e d LowI n f o r m a t i o n R e q u i r e m e n t s M i ni m a lI n f o r m a t i o n S e a r c h M i ni m a lC o n s i d e r a t i o n o f N e w A l t e r n a t i v e s N oneM u l t i p l e B u y i n g I n f l u e n c e V e r y S m a l lF i n a n c i a l R i s k s LowCopyright 169。 2023 by Harcourt, Inc. 1 Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit ) D EC I SI O N T Y PES t r a i g h t R e b u y M o d i f i e d R e b u y N e w T a s kN e w n e s s o f P r o b l e m o r N e e d Low M e di um H i ghI n f o r m a t i o n R e q u i r e m e n t s M i ni m a l M ode r a t e M a x i m umI n f o r m a t i o n S e a r c h M i ni m a l Li m i t e d E x t e ns i v eC o n s i d e r a t i o n o f N e w A l t e r n a t i v e s N one Li m i t e d E x t e ns i v eM u l t i p l e B u y i n g I n f l u e n c e V e r y S m a l l M ode r a t e La r geF i n a n c i a l R i s k s Low M ode r a t e H i ghCopyright 169。 2023 by Harcourt, Inc. 1 Current Developments in Purchasing ? Increasing Use of Information Technology ? Relationship Emphasis on Cooperation and Collaboration ? Supply Chain Management ? Increased Outsourcing ? Target Pricing ? Increased Importance of Knowledge and Creativity Copyright 169。 2023 by Harcourt, Inc. 1 Buyers define trust using terms such as: ? Openness ? Dependability ? Candor ? Honesty ? Confidence ? Security ? Reliability ? Fairness ? Predictability Copyright 169。 2023 by Harcourt, Inc. 1 Why is Trust Important? The shift toward relationship selling emphasizes the initiation and nurturing of longterm buyerseller relationships based on mutual trust and valueadded benefits. Copyright 169。 2023 by Harcourt, Inc. 1 Knowledge Bases Help Build Trust and Relationships (Figure ) Industry Service Product Competition Company Price/ Promotion Technology Market/ Customer Possible Knowledge Bases Copyright 169。 2023 by Harcourt, Inc. 1 Sales Ethics Image of Salespeople Deceptive Practices ? When salespeople give answers when they do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer. ? Salespeople can create product liabilities by: – Expressed Warranty – Misrepresentation – Negligence Copyright 169。 2023 by Harcourt, Inc. 1 Sales Ethics Image of Salespeople NonCustomerOriented Behavior ? Pushy ? Hard Sell ? Fast Talking ? High Pressure Copyright 169。 2023 by Harcourt, Inc. 1 Module 4 Communication Skills Copyright 169。 2023 by Harcourt, Inc. 1 Verbal Communication: Questioning Types of Questions Classified by Amount and Specificity of Information Desired ? Openend or Nondirective Questions – free response What happens when…? How do you feel…? Describe the… ? Closedend Questions – response limited to a few words. – Are you… – How many… – How often… ? Dichotomous/MultipleChoice Questions – directive forms of questioning – Which do you prefer, the ____ or the ____? Copyright 169。 2023 by Harcourt, Inc. 1 Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose ? Probing Question