Environmental Factors

Business buyers are influenced heavily by factors in (he current and expected economic environment, such as the level of primary demand, the economic outlook and the cost of money. As economic uncertainty rises, business buyers cut back on new investments and attempt to reduce their inventories.

An increasingly important environmental factor is shortages in key materials. Many companies a re now more willing to buy and hold larger inventories of scarce materials to ensure adequate supply. Business buyers are also affected by technological, political and competitive developments in the environment. Culture and customs can strongly influence business btiyer reactions to the marketer's behaviour and strategies, especially in the international marketing environment (see Marketing Highlight 7,2). The business marketer must watch these factors, determine how they will affect the buyer, and try to turn these challenges into opportunities.

Continue reading here: How Do Government Buyers Make their Buying Decisions

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