market

Buying process of institutional customers
There are different process of buying goods and services by the customers. Some of the process of buying are discussed below.
1. Problem recognition: The buying process of institutional customers begin when problems or needs are recognized. The customers must recognize their needs which may be caused by internal or external stimuli. The needs or problems such as to participate in trade and exhibitions, purchase new machines and equipments, purchase raw materials etc.
2. Product specifications: The buyers must prepare detail specifications about the products or services. It is generally done by technical personnel by which the value of goods is analyzed.
3. Supplier search: The buyers must search the potential suppliers and list out the suppliers who can supply the goods according to their requirements. The list of suppliers can be prepared from the internal and external sources. The internal sources may be company, files catalog and purchase department where as external sources may be from the public notice.
4. Inviting proposals: Invitation can be done publically through different media such as television, magazines, newspapers and radio etc. All the interested suppliers will submit the proposals along with samples as per the needs of the buyers in order to supply the goods.
5. Evaluation of Alternatives: Several criterias may be adopted such as performances of the suppliers, regularity, quality, terms of delivery, price, reliability and its evaluation. After evaluating all the alternatives, customers must take the decision to purchase or not to purchase the goods.
6. Purchase Decision: The supplier is selected and purchase step is taken. Before taking the decision to purchase, negotiation is made such as terms of sale, method of payment, warranty and credit arrangement etc.
7. Post purchase evaluation: It is the last process of institutional buyers. In this stage,performance of product and supplier is evaluated. Actual performance is compared with specification. It helps to determine whether to continue the supplier or change or end the situation. It the customer is satisfied, the purchase can continue otherwise the relation may get broken.