Recognition of the three levels of problem solving by organizational buyers and
ID: 442127 • Letter: R
Question
Recognition of the three levels of problem solving by organizational buyers and the different problem solving steps they pass through has important implications for market analysis. Each level of problem solving may require a different marketing mix—especially in regard to the promotion variable—even when identical goods or services are involved. Knowing the nature of buying behavior at each level helps to determine the proper ingredients for a marketing mix.
Assignment
Assume the role of marketing manager for a large firm that produces stain-resistant fabrics that are used by furniture companies to upholster chairs, sofas, and love seats. Similar fabrics are typically available to the furniture producers from several competing suppliers, including some larger and some smaller firms. While some slight differences in patterns and colors may exist, all of the suppliers produce fashionable fabrics that meet the quality and style standards set by the customers' production and marketing departments. In fact, most of the competing suppliers use the exact same method to treat fabrics so that they will resist stains. And, with few exceptions, the prices charged by all suppliers tend to be almost identical.
Recently, you learned-from your sales force—of three potential customers whose needs might be satisfied by the fabric you sell. Read each of the three buying situations described below, and then:
Determine which level of problem solving-new-task buying, straight rebuy, or modified rebuy—applies to each situation.
Discuss in detail the probable nature of the firm's buying behavior in each situation. How important would multiple buying influence be in each situation?
Explain how your firm might vary its marketing mix to satisfy the potential customer's needs in each situation.
Situation 1:
The potential customer has been selling a very successful line of upholstered furniture for a number of years. The company has not been using a stain-resistant fabric. But, furniture retailers have recently been complaining that the furniture gets soiled very easily. The potential customer thinks that your stain-resistant fabric could possibly be used instead of the fabric it gets from its current supplier.
a) Level of problem solving:
b) Nature of buying behavior:
c) Marketing mix:
Situation 2:
The customer has been purchasing a similar fabric from one of your firm's competitors for several years, but is dissatisfied with its present supplier's delivery service and technical support.
Level of problem solving:_____________________________________________________________
Nature of buying behavior:
c) Marketing mix:
Situation 3:
The customer has been purchasing all of its fabric from one of your competitors on a regular basis for several years. No change in this procedure is expected.
Level of problem solving:____________________________________________________________
Nature of buying behavior:
c) Marketing mix:
Question for Discussion
In which of the three buying situations would emotional needs be most important? Least important? To what extent does this depend on the overlap between individual buyer needs and company needs?
Explanation / Answer
1) a) Level of problem solving: Limited Problem
Nature of buying behavior Variety seeking
MIx = stain-resistant fabric introduce
2) Level of problem solving = Limited Problem
Nature of buying behavior = Dissonace
MIx = introduce double product with nominal rate
3) Level of problem solving: = Routinized response behavior
Nature of buying behavior = Habitual
Mix = Introduce the promotion for the product
________________________________________________________________________________________
According to the situation 2 buyer dissatisfy with their producers, if we done marketing mix properly, the customer can come to buy our products
According to the situation 1 buyer, dissatisfy with our product, modified our product then our customer can't go to other producer.
According to situation 3 buyer is satsify with their producers, we can promotion our product if customer have to decided to buy our product or not .
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