Environmental Factors

Within the macroenvironment, business buyers pay close attention to numerous economic factors, including interest rates and levels of production, investment, and consumer spending. In a recession, business buyers reduce their investment in plant, equipment, and inventories. Business marketers can do little to stimulate total demand in recessionary periods; they can only fight harder to increase or maintain their share of demand.

Companies that fear materials shortages often buy and hold large inventories and sign long-term contracts with suppliers to ensure steady availability. In fact, DuPont, Ford, and other major companies regard long-term supply planning as a major responsibility of their purchasing managers.

Business buyers also actively monitor technological, political-regulatory, and competitive developments. For example, environmental concerns can cause changes in business buyer behavior. A printing firm might favor suppliers that carry recycled papers or use environmentally safe ink. One buyer claimed, "We push suppliers with technical expertise to be more socially conscious."

Figure 3-5 Major Influences on Business Buying Behavior

Continue reading here: Patterns of Market Segmentation

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