Decision-making process
When the DMU wants to purchase a certain product or service the following steps are taken inside the buying center: * Need or problem recognition: the recognition can start for two reasons. The first reason can be to solve a specific problem of the company. The other reason can be to improve a company's current operations/performance or to pursue new market opportunities. * Determining product specification: The specification includes the peculiarities which the product/service that is going to be purchased must contain. * Supplier and product search: this process contains the search for suppliers that can meet a company's product or service needs. First a supplier that matches with the specifications of the company has to be found. The second condition is that the supplier can satisfy the organizations financial and supply requirements. * Evaluation of proposals and selection of suppliers: the different possible suppliers will be evaluated by the different departments of the company. * Selection of order routine: this stadium starts after the selection of the supplier. It mainly consists of negotiating and agreeing with the supplier about certain details. * Performance feedback and evaluation: performance and quality of the purchased goods will be evaluated. In this process of making decisions different roles can be given to certain members of the center of the unit depending on the importance of the part of the organization.Buying center size
American research undertaken by McWilliams in 1992 found out that the mean size of these buying centers mainly consists of four people. The range in this research was between three and five people. The type of purchase that has to be done and the stage of the buying process influence the size. More recent research found that the structure, including the size, of buying centers depends on theConceptual and methodological issues in buying center research
There are several issues concerning buying centers which need additional research. These issues can be divided into various spheres:Buying center boundaries and buying center domain
Distinguishing the buying center from its environment, also defining and delimiting the activities of a particular buying center.Buying center structure
Understanding how organizational structure may differ from or may shape the structure of the buying center and examining how a particular buying strategy may serve to mediate the effects of environmental uncertainty on the structure of the buying center.Process considerations in buying center
Power and conflict issues within the buying center.Decision making
One stream of research focuses on the number of decision phases and their timing and the other emphasizes the type of decision-making model (or choice routine) utilized.Communications flow
The informal interactions that emerge during the buying process.References
{{reflist Business-to-business Organizational behavior Procurement