How Do Government Buyers Make their Buying Decisions

Government buying practices often seem complex and frustrating to suppliers, who have voiced many complaints about government purchasing procedures. Those include too much paperwork and bureaucracy, needless regulations, emphasis on low bid prices, decision-making delays, frequent shifts in buying personnel and too many policy changes. Yet, despite such obstacles, selling to the government can often be mastered in a short time. The government is generally helpful in providing information about its buying needs and procedures, and is often as eager to attract new suppliers as the suppliers are to find customers.

When the mighty US Fleet edged its way up the Gulf during Desert Storm, five little plastic boats led it. The little Royal Navy Hunt Class MCMVa (Mine Counter-Measure Vessels) were in a league of their own at the dangerous job of clearing a path for the main fleet. They were made by Vesper Thornycroft, a small British company which is a master at selling to governments around the world. While the world's leading defence contractors seek alliances and mergers to meet the 'peace dividend's' reduced demand, Vosper has an order book worth £600 million and 14 vessels under construction, 95 per cent of them for export. Part of its strength is Vesper's dominance in the niche for glass-reinforced plastic (GRP) mine hunters, corvettes and patrol craft. Just the sort of ships that small navies want.

Vbsper's strength extends beyond the vessels. With its vessels it offers a maritime training and support service where it has pioneered computer-based learning. Many clients come from the Middle East and travel with their families, so Vosper has built an Arabic school for 70 pupils next to the maritime training centre. It now does training for other firms selling to the Middle East, so strengthening its position in the region. Others of

Political Graft: Wheeze or Sleaze?

Marketing

Highlight

On 26 May 1994 at the White House, President Bill Clinton's chef de cabinet was forced to resign. He had used a government helicopter to take him to a game of golf. lie was ordered to reimburse the Treasury for the cost of his jaunt, 813,129.66. Other continents; other morals.

On 20 June 1994 in Paris, the new Members of the European Parliament were invited to a briefing on the many perks attached to their new status. The subject excited Jean-Francois Hory, president of Bernard Tapie's socialist MRG party. From his place in the front row lie turned in his seat, fixed a knowing eye on his new colleagues and addressed them in the manner of an old hand talking down to university freshmen: 'One thing you need to know about travel allowances - they'll want to know your address. If you have one or more second homes, make sure you list the one furthest from Brussels.' Obviously, a return flight from Marseilles to Brussels is worth more than the tram fare from Loos-les-Lille to Brussels. Do you detect a whiff of moral purity?

Political corruption used to be a thing other countries did, but no more. In the United States, United Kingdom, France, Spain, Italy, Japan and elsewhere, accusations of political corruption involving businesses have shaken the countries' leaders. Eurofraud is estimated to cost EU taxpayers over 10 billion ecu per year. Sometimes the t'iddles are minor, like exaggerating expense claims on Eurojaimts, but often they are not. In 1991 Antonio Quatraro leapt to his death from a Brussels window. He was a European Commission official responsible for authorizing subsidies. In 1990 a fraud was discovered where he allegedly received backhanders for rigging the auction of Greek-grown tobacco to benefit Italian traders.

The auction rigging would be illegal anywhere, but often what is common practice in one country will bring a senior politician down in another. All governments have codes of practice, but as Table 1 shows, they are not consistent. There are also different cultural traditions about obeying rules. In Britain a Treasury minister had to fight for his political life following accusations that a controversial Arab businessman had paid for a weekend that the minister had had at the Paris Ritz Hotel. The bill was less than Ffr4,000 and in no other European country would he have had to declare such a gift. German political representatives have to sign a register, but the Bundestag's guidelines suggest only declaring gifts over DM10,000.

In Japan the attitude towards political corruption is changing slowly. In 1988 Kiichi Miyazawa resigned as finance minister after being caught up in the Recruit scandal. Recruit, an employment agency, had secretly given large tranches of its own shares to politicians, including cabinet ministers, in exchange for political favours. But by 1991 Mr Miyazawa was sufficiently rehabilitated to become prime minister. This follows the 'traditional' pattern for Japanese politicians caught taking bribes oro-shoku, 'defiling one's job'. O-shoku carries no moral overtones about wrongdoing, it just means that through carelessness the publicity has dishonoured the politician's honoured position. The usual line of defence in the Diet is that the politicians knew nothing, since their aides took the money. In that way the politician does not lose face, junior aides are not worth prosecuting and ever;'one is happy.

The mood changed after the Sagawa scandal. Shin Kanemaru needed money to split the ruling LDP and start one of his own. He needed a lot of cash and most of it came from Sagasva Kyubin, a trucking company that wanted political favour in order to expand its business. Gold bars and bonds were found in Mr Kanemaru's home and office. He was found guilty of not reporting Y2SO million in 'political donations', but fined less than

TABI.EI GOVERNMENT CODES OF PRACTICE IN VARIOUS COUNTRIES

TABI.EI GOVERNMENT CODES OF PRACTICE IN VARIOUS COUNTRIES

COMPULSORY

REGISTER

REGISTER OF

MPs DECLARE

MUST DECLARE

COUNTRY

REGISTER OF

OPEN TO THE

INCOMPysiIARES

INTEREST IN

FREE RlTZ

INTERESTS?

PUBLIC?

DETAILS?

DEBATE?

WEEKEND?

France

Assets

No

No

No

No

Germany

Yes

Yes

No

No

No

Italy

Income

Yes

Yes

No

No

Spain

Yes

No

No

No

No

United Kingdom

Yes

Yes

No

Yes

Yes

United States

Yes

Yes

Yes

No

Yesa

NOTE: ''Gifts over §250 nut acceptable.

NOTE: ''Gifts over §250 nut acceptable.

y100,000. After this, a new term entered the Japanese political vocabulary, seijijuhai or 'politics rotten to the point of disintegration'.

Such large-scale 'crony capitalism' has much to do with the meltdown of the Tiger economies in the late 1990s. Indonesia is in the most invidious position,' said Chris Tinker, regional economist at ING Bering in Hong Kong. 'Crony capitalism and pressure from the president's children, with privileged business interests, have held back economic restructuring, causing massive capital flight.' Meanwhile Indonesia's annual per-capita consumption declined from US$1,200 to 8300; stook-market capitalization went from $118 billion to Sl7 billion; and onSy 22 of the country's 286 publicly listed companies remained solvent.

When selling to governments, especially

foreign ones, marketers face a great dilemma. Should they follow St Ambrose's advice to St Augustine: 'When you are at Rome live in the Roman style; when you are elsewhere live as they live elsewhere'? Or should they behave like a saint?

SOURCES; The loading quotation is from 'An open letter to chose unnerved by the little judges', by MEP Thierry JeanPierre Terry; other sources are Terry McCarthy, 'It's not graft, just duty anil obligation', /ndependenl (27 October 1994), p, 16; 'Hands up all those hit by sleaze', The Economist (29 October 1.994), pp. 49-51; 'The sour taste of gravy', The Kconvmist (5 November 1994), p. 50; Alix Christie and Julie Read, 'fraud crusader gears up for a fight, 7'hu European (11-17 November 1994), p. 11; John McBeth, 'Ground zero', For Eastern,-Economic Review (22 January 1998), pp. 14-17. See also a series of five special reports on 'Asia in Crisis' published in the Financiul Times between 12 and 16 January W98.

Vesper's activities get it closely involved in its customers' operations. The company has a three-year contract for the Ministry of Defence's Record Data Centre and has a five-year contract to operate maritime services craft for the Royal Air Force. Not had for a company sold by British Shipbuilders to a management team in 1985 for £18.5 million - in 1994 the company's value was $236 million.25

Many companies that sell to the government are not so marketing oriented as Vosper Thornycroft for a number of reasons. Total government spending is determined by elected officials rather than by any marketing effort to develop this market. Government buying has emphasized priee, making suppliers invest their effort in technology to bring costs down. When the product's characteristics are specified carefully, product differentiation is not a marketing factor. Nor do advertising or personal selling matter mueh in winning bids on an open-bid basis.

More companies now have separate marketing departments for government marketing efforts. British Aerospace, Eastman Kodak and Goodyear are examples.

These companies want to co-ordinate bids and prepare them more scientifically, to propose projects to meet government needs rather than just respond to government requests, to gather competitive intelligence, and to prepare stronger communications co describe the company's competence.

The business market is vast. In many ways, business markets are like consumer markets, but business markets usually have fewer, larger buyers who are more geographically concentrated. Business demand is derived, largely inelastic and more fluctuating. More buyers are usually involved in the business buying decision and business buyers are better trained and more professional than are consumer buyers. In general, business purchasing decisions are more complex and the buying process is more formal than consumer buying.

The business market includes firms that buy goods and services in order to produce products and services co sell to others. It also includes retailing and wholesaling firms that buy goods in order to resell them at a profit. Business buyers make decisions that vary with the three types of buying situation: straight re&ijys, modified rebuys and new tasks. The decision-making unit of a buying organization -the buying centre - may consist of many people playing many roles. The business marketer needs to know the following: Who are the main participants? In what decisions do they exercise influence? What is their relative degree of influence? And what evaluation criteria does each decision participant use? The business marketer also needs to understand the primary environmental, interpersonal and individual influences on the buying process. The business buy ing-decision process itself consists of eight stages: problem recognition, general needs description, product specification, supplier search, proposal solicitation , supplier selection, order-routine specification and performance review. As business buyers become more sophisticated, business marketers must keep in step by upgrading their marketing accordingly.

The institutional market consists of schools, hospitals, prisons and other institutions that provide goods and services to people in their care. Low budgets and captive patrons characterize these markets. The government market is also vast. Government buyers purchase products and services for defence, education, public welfare and other public needs. Government buying practices are highly specialized and specified, with open bidding or negotiated contracts characterizing most of the buying. Government buyers operate under the watchful eye of politicians and many private watchdog groups. Hence, they tend to require more forms and signatures and to respond more slowly in placing orders.

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Readers' Questions

  • kerry
    What are the two ways governments make purchases?
    1 year ago
    1. Competitive Bidding: This is the most common way for governments to make purchases. It involves soliciting bids from vendors, comparing them and choosing the one that offers the best value for money.
    2. Sole Source Purchasing: This involves making a purchase directly from a single vendor without any competitive bidding process. This is usually done when there is an urgent need for a product or service, or when the product is only available from a single source.
    • bucca
      How do institutins and government agencies do their buying pp?
      1 year ago
    • Institutions and government agencies typically purchase products and services through a competitive bidding process. This process typically involves vendors submitting offers or bids that are reviewed by the agency or institution and compared to each other. The agency or institution then chooses the most suitable offer. The process is typically governed by law, which includes rules and regulations that ensure fair and transparent bidding processes.
      • esther
        How goverment buyer make their buying decison?
        1 year ago
      • Government buyers typically make their purchasing decisions with the assistance of an internal procurement team. The team is responsible for researching and evaluating potential vendors and products, obtaining bids, negotiating contracts, and ensuring that all applicable laws and regulations are followed throughout the purchasing process. The team may also solicit feedback from stakeholders or external sources to ensure that the chosen vendor offers the best solution for the government's needs.
        • robert
          How business buyers make their buying decision?
          1 year ago
        • Business buyers typically make their buying decisions based on price, value, quality, reliability, and service. They weigh the advantages and disadvantages of each product or service and compare it against their organizational needs. They also consider what their competitors are offering, and how the product or service will help their business to grow or improve. They may also look for features, such as being cost efficient, easy to install, or having a superior warranty. Finally, buyers will often assess the overall reputation of the vendor and their ability to meet the needs of their organization.
          • olivier mackenzie
            How do institutions and government agencies do thier buying?
            1 year ago
          • Institutions and government agencies typically purchase goods and services through competitive bidding processes, where potential vendors submit bids based on price, quality, and other factors. They may also utilize e-procurement systems which offer an electronic platform for price comparison and bidding. Additionally, government agencies may use cooperative purchasing arrangements, where multiple agencies work together to purchase goods and services at a more economical price.
            • CHICA
              How do institution and govement agencies do thier buying?
              1 year ago
            • Government and institutional agencies typically purchase goods and services through a competitive bidding process. The bidding process is designed to ensure that the agency receives the best available price and terms for their purchases. The agency typically solicits bids from multiple vendors and selects the lowest, most qualified bidder. Additionally, the agency’s purchasing procedures are heavily regulated by government policies and laws to ensure that the best interests of taxpayers are represented.
              • aidan
                How do institution and government agency do their buying?
                1 year ago
              • Institutions and government agencies follow a specific procurement process when making purchases. Here are the general steps involved:
                1. Needs Assessment: The institution or agency evaluates its requirements and identifies the goods or services needed.
                2. Define Specifications: Detailed specifications are determined, including the quality, quantity, delivery timeline, and any specific standards or certifications required.
                3. Budget Allocation: Funding is allocated for the purchase, considering the institution's or agency's budgetary constraints.
                4. Market Research: Potential suppliers or vendors are identified through market research, competitive bidding, or supplier databases.
                5. Request for Proposal (RFP) or Request for Quotation (RFQ): The institution or agency issues an RFP or RFQ document, which includes the specifications and invites suppliers/vendors to submit proposals or quotes.
                6. Evaluation of Proposals: The received proposals or quotes are evaluated based on predetermined criteria (e.g., price, quality, delivery, past performance, etc.).
                7. Vendor Selection: A vendor is selected based on the evaluation results and compliance with relevant regulations (e.g., minority-owned business participation requirements).
                8. Negotiation and Contracting: The institution or agency negotiates favorable terms and conditions with the selected vendor(s), ensuring a legally binding contract that protects both parties' interests.
                9. Purchase Order: A purchase order is issued to the vendor detailing the agreed-upon terms, including the final price, delivery schedule, payment terms, and any other requirements.
                10. Receiving and Inspection: Upon delivery, the institution or agency inspects the goods or services received to ensure conformance with the agreed specifications and quality.
                11. Payment and Invoicing: The vendor submits an invoice, and the institution or agency verifies the receipt of goods or services before making payment within the agreed payment terms.
                12. Performance Evaluation: The institution or agency assesses the vendor's performance against the contract terms and specifications, maintaining records for future reference and feedback.
                13. Please note that the specific procedures and regulations followed may vary depending on the country, type of institution, or government agency involved.
                • abraham michael
                  How institutional and government agency do their buying?
                  1 year ago
                • Institutional and government agencies generally follow a procurement process or set of guidelines when making purchases. The specific steps and regulations involved may vary depending on the country or organization, but the overall process typically includes the following stages:
                  1. Needs Assessment: The agency identifies the goods or services it requires and assesses its internal needs. This involves determining the quantity, quality, specifications, and budget for the purchase.
                  2. Request for Proposal (RFP) or Request for Quotation (RFQ): The agency drafts a document outlining the requirements and invites potential suppliers to submit proposals or quotations. The RFP/RFQ may be publicly advertised or selectively sent to specific vendors.
                  3. Vendor Evaluation: The agency reviews the submitted proposals/quotations and evaluates each vendor based on various factors such as price, quality, experience, delivery time, and compliance with established criteria. This evaluation may involve a committee or panel responsible for selecting the most suitable supplier(s).
                  4. Negotiation and Contracting: The agency enters into negotiations with the chosen vendor(s) to finalize the terms, conditions, and pricing of the purchase. This negotiation phase may involve further clarification of expectations and potential revisions to the initial proposals.
                  5. Contract Award: Once negotiations are complete, the agency awards the contract to the selected vendor(s). The contract outlines the agreed terms and conditions, including delivery schedules, payment terms, and any other specific requirements.
                  6. Fulfillment and Delivery: The vendor(s) fulfills the order as per the contract and delivers the goods or services to the agency. The agency may inspect the received items to ensure they meet the required standards.
                  7. Payment and Invoicing: The agency processes the payment to the vendor(s) according to the agreed-upon terms and conditions. Vendors usually submit invoices for the goods or services provided, and the agency verifies the invoice against the contract before making payment.
                  8. Performance Evaluation: After the delivery of goods or completion of services, the agency may evaluate the performance of the vendor(s) against the agreed terms and quality standards. This evaluation provides feedback and helps inform future procurement decisions.
                  9. It is important to note that government agencies often need to adhere to additional regulations, such as public procurement laws or specific policies related to transparency, ethics, or sustainability. These additional requirements may vary across jurisdictions.
                  • CEDIVAR
                    How do instittution and government agencies their buying?
                    1 year ago
                  • Government agencies and institutions typically follow an established procurement process when making purchases. This process typically includes an analysis of the need and required specifications, issuing a request for bids or quotations, evaluating the received bids or quotations, awarding the contract to the successful bidder, and then making the purchase.
                    • esko
                      How institutional and govrnment buyers make their buying descisons?
                      1 year ago
                    • Institutional and government buyers typically make their buying decisions based on a number of different factors, including price, quality, availability, service, reliability, reputation, and environmental and social responsibility. In many cases, government buyers also take into consideration any legal requirements or restrictions, such as affirmative action, bidding processes, or the availability of special funds. In addition, government buyers usually must follow a specific purchasing process in order to ensure compliance with relevant laws and regulations. For example, they may be required to seek multiple bids or conduct a lengthy evaluation process.
                      • birgit
                        How government markets make their buying decisions?
                        1 year ago
                      • Government markets typically use a Request For Proposal (RFP) process to make buying decisions. An RFP is a document that solicits proposals from vendors who are able to provide the required services/products. The RFP usually outlines specifications or requirements, a timeline, and terms of payment. Government markets may also evaluate price, quality of services/products, and vendor characteristics, such as experience, when making their buying decisions.
                        • saara
                          How do institutions make their buying decisions?
                          1 year ago
                        • Institutions make their buying decisions based on a variety of factors including cost, quality, availability, and other criteria relevant to the specific needs of the institution. These decisions are often made by procurement committees or other decision-making bodies established within the organization that are focused on the best interests of the institution. Committees may review information such as specifications, product reviews, pricing, delivery times, warranties, and customer satisfaction ratings, which they use to make an informed decision. Institutions may also consider the environmental, ethical, and/or social impacts of their purchasing decisions as well.
                          • kathrin roth
                            How instiotuion and government agencie do their buying?
                            1 year ago
                          • Institutions and government agencies typically purchase products and services through a competitive bidding process. They solicit offers through a Request for Proposal (RFP) process, which solicits ideas, information, and cost estimates from vendors. After considering the various proposals, the institution or government agency will select the vendor that provides the best combination of quality, price, and terms. The vendor must then provide a purchase order that outlines the specific needs of the buyer before any purchase can be made.
                            • Stephan
                              How do govermental markets make buying decisions?
                              1 year ago
                            • Govermental markets typically make buying decisions through a formal bidding process, where vendors submit bids for the product/service being requested. The selection of the bid is based upon criteria such as cost, quality, and compliance with the established specifications. In some cases, the government organization may also apply certain criteria according to the type of goods or services being requested, such as price, delivery time, or performance guarantees.
                              • Nicholas
                                How do instututional markets make buying decisions?
                                1 year ago
                              • Institutional markets make buying decisions based on a variety of factors, including budgetary constraints, the availability of the product or service, the perceived value of the product or service, the advice of advisors, the level of customer service offered, the reputation of the vendor, and the overall risk associated with the transaction. Additionally, institutional buyers take into account the terms and conditions of sale, including pricing, payment terms, delivery, and after-sales support.
                                • silvestro
                                  What is the buying decision of the institutional market?
                                  1 year ago
                                • The buying decision of the institutional market is based on the various factors that influence their decision-making process. These factors may include organizational goals, financial resources, availability of materials, technical capabilities, industry trends, and market conditions. Institutions will assess the advantages and disadvantages of the various options before making a final decision.
                                  • Sara
                                    How institutional and government buyer makes their buying decision?
                                    1 year ago
                                  • Institutional and government buyers usually make their buying decisions through a competitive bidding process. Through this process, potential suppliers submit bids with their offers and the buyer evaluates these bids in terms of price, quality, delivery, and other criteria before making a decision. The process also involves evaluating the potential supplier’s financial capability, past performance, references, and other factors. The buyer may also conduct a risk analysis to ensure the selected supplier is equipped to deliver the required goods or services.
                                    • ines
                                      How institution and government buyers make their buying decision?
                                      1 year ago
                                    • Institution and government buyers typically evaluate a supplier's value proposition to determine whether it meets their need in terms of cost, quality, and service. They may conduct market research to identify potential suppliers, review bid documents and make comparisons between suppliers, and take in-depth negotiations to determine the optimal supplier for their needs. They may also consult with industry experts for additional guidance, and review the supplier's prior performance on similar projects or contracts. Government buyers may also be required to adhere to specific procurement regulations.
                                      • gerald
                                        How do institution buyers and government agencies do their buying?
                                        1 year ago
                                      • Institution buyers and government agencies use a variety of methods to purchase goods and services. They often issue public bids and requests for proposals, which allow vendors to submit offers for contracts and projects. Government agencies also commonly purchase through established contracts with approved vendors, or through cooperative purchasing agreements between government agencies. Additionally, government agencies may make purchases through the General Services Administration (GSA) schedules, which is a program offering streamlined processes for the purchase of goods and services.
                                        • ellen
                                          How do institutional buyers and givernment agencies do their buying?
                                          1 year ago
                                        • Institutional buyers and government agencies typically purchase supplies and services through a formal bidding process. This process typically involves a request for proposals (RFPs) where potential suppliers submit bids for the goods and services the agency needs. The agency then evaluates each bid and chooses the most favorable supplier based on quality, cost, timeliness, and other criteria. Once a supplier is selected, the agency and the supplier enter into a contract outlining the terms and conditions of the purchase, including payment schedules, delivery timelines, and product specifications.
                                          • william
                                            How do institutional buyer's. and governmental agencies. do their buyers?
                                            1 year ago
                                          • Institutional buyers and governmental agencies typically do their buying through a combination of competitive bidding, negotiated contracts and sole-source contracts. Competitive bidding involves issuing a call for tenders or a Request for Proposals (RFP) and then examining the bids and awarding the contract to the lowest responsive bidder. Negotiated contracts involve negotiation between the institutional buyer and the seller to establish the terms of the purchase. Sole-source contracts are awarded to a single seller without going through the competitive bidding process.
                                            • jean
                                              How institutional and government buyers make their buying decisions document?
                                              1 year ago
                                            • Institutional and government buyers typically use a well-defined process to make purchasing decisions. This process typically includes gathering requirements, researching potential vendors and products, creating a request for proposal (RFP), evaluating bids and proposals, communicating with vendors, and making a final purchasing decision. The goal of the process is to find the best product at the best price with the least amount of disruption to business operations. To do this, buyers need to research strategies, products, vendors and relevant laws and regulations to ensure the best value and least amount of risk. The buyer should have a clear set of requirements upfront. This includes identifying the need, the level of quality and service required, the expected return on investment and any other factors that need to be considered. Buyers also need to create an RFP document outlining their needs and requirements. The document should include deadlines and deliverables, terms and conditions and pricing information. Finally, the buyer needs to evaluate bids and proposals from the vendors. The evaluation should take into account price, quality, service, delivery and any other factors specified in the RFP. Once the evaluation is complete, the buyer can make a final purchasing decision.
                                              • thomas
                                                How government buyer make buying decision?
                                                1 year ago
                                              • Government buyers typically make their buying decisions based on a variety of factors, including price, quality, availability, and reputation. They must first assess the need for a product or service and then select the most cost-effective solution that meets their requirements. They need to consider whether a product or service meets their performance criteria, as well as if it complies with any regulations or laws that may apply. They must also review the technical specifications and capabilities of potential solutions in order to ensure they are suitable for the task. Additionally, they need to review the terms and conditions of products or services they are considering, including warranties, delivery times, and payment options. Finally, they may need to conduct a competitive bidding process to ensure they get the best deal.
                                                • GERDA
                                                  How Instuitutional and Government buyers make their buying decision?
                                                  1 year ago
                                                • Institutional and government buyers typically make their buying decisions based on a variety of factors. These include:
                                                  1. Cost/Value Analysis: Buyers compare the costs of goods or services to their perceived value.
                                                  2. Political Considerations: Buyers must take into account political factors, such as their relationship with elected officials, in their decision-making process.
                                                  3. Regulatory Considerations: Regulations can limit the types of goods or services that can be purchased.
                                                  4. Quality Standards: Buyers want the highest quality goods or services at the best price.
                                                  5. Ethics and Social Responsibility: Buyers must consider ethical and social responsibilities when making their purchasing decisions, as how their purchases affect society can be just as important as the quality of the goods or services.
                                                  6. Vendor Reputation: Buyers consider the reputation of the vendors they are buying from, as this can have a major impact on the success of the purchase.
                                                  • Fatimah
                                                    How institutional and government buyers make thir buying decisions?
                                                    1 year ago
                                                  • Institutional and government buyers typically make purchasing decisions based on several criteria, including cost, quality, supplier reputation, and availability. They are usually required to evaluate and compare bids from multiple vendors in order to select the best option. It is common for government agencies to use a Request for Proposal (RFP) process to identify potential suppliers and collect information on each vendor’s products and services. These organizations are also expected to maintain compliance with various regulations and adhere to strict codes of ethics when making purchasing decisions. Additionally, government entities often have specific rules and procedures for awarding contracts, and these must be followed to ensure a fair and transparent purchasing process.
                                                    • bisirat
                                                      How institutional and government buyers make their buying decisions in brief description?
                                                      1 year ago
                                                    • Institutional and government buyers typically make buying decisions based on a variety of factors, including cost and value, industry standards, quality, availability and service offerings, supplier reputation, and compliance with government regulations. They may also prioritize environmental or social impact when making their decisions, or weigh the cost of any maintenance or service agreements that may be involved. Buyers may also consider any financial incentives or discounts that suppliers may offer, as well as their delivery or payment terms. Additionally, buyers may conduct competitive bids and solicit competing quotes in order to obtain the best possible value and terms.
                                                      • Sara
                                                        How do institutional buyer and government ,agencies do their buying?
                                                        1 year ago
                                                      • Institutional buyers and government agencies typically follow a procurement process for purchasing goods and services. This process involves identifying the need for a product or service, researching and selecting potential suppliers, establishing terms and conditions for the purchase, negotiating with suppliers, and eventually selecting a vendor and making a purchase. In some cases, government agencies may also be required to use competitive bidding processes and may be subject to additional rules and regulations, depending on the jurisdiction and type of purchase.
                                                        • Sven
                                                          How do institutional buyers and governmental agencies do their buying?
                                                          1 year ago
                                                        • Institutional buyers and governmental agencies use the competitive bidding process to purchase items and services. This process entails soliciting competitive bids from multiple suppliers and then selecting the best offer based on a variety of factors, such as price, quality, delivery time, and service. Governmental agencies may also require that suppliers be capable of meeting certain criteria, such as minority- or women-owned business requirements, before being eligible to compete for the job. Additionally, many public agencies have their own procurement procedures that must be followed.
                                                          • berhane
                                                            How do insitutional buyers and government agencies do their buying?
                                                            1 year ago
                                                          • Institutional buyers and government agencies typically follow specific procurement processes when making purchasing decisions. These may include issuing public bids, requesting supplier proposals, negotiating with suppliers, conducting competitive analysis, and issuing purchase orders. Additionally, government agencies may have specific bidding regulations and preferences. They may use a variety of methods to find products and services, such as published solicitations, reverse auctions, and online contracting platforms.
                                                            • valerio
                                                              What are the unique aspects of institution and government buyers make their buying decisions.?
                                                              1 year ago
                                                            • Institution and government buyers typically have unique requirements and priorities that govern their purchasing decisions. These include considerations such as compliance with local, state, and federal regulations; cost-effectiveness; availability of technical or professional expertise; quality assurance; and long-term sustainability. Buyers must also evaluate the potential impact of their purchases on the environment, local businesses, and communities. Buyers often prefer to purchase from suppliers who are certified in areas such as fair trade, minority business enterprise, or energy efficiency. In addition, they often place a priority on the social, economic, and environmental benefits of their purchases and may require that suppliers demonstrate their commitment to corporate social responsibility. Finally, institution and government buyers must consider the purchasing process itself, such as the number of vendors involved and their ability to handle large orders.
                                                              • madihah
                                                                How do institutional buyers and government agencies do theur buying?
                                                                1 year ago
                                                              • Institutional buyers and government agencies typically use a formal purchasing process to purchase goods and services. This process generally involves obtaining bids from multiple vendors, evaluating those bids, selecting a vendor, and negotiating a contract. Many government agencies have specific requirements for the types of contracts that can be used and the bids that must be submitted. Additionally, the procurement process often includes legal, financial and other reviews prior to awarding a contract.
                                                                • seredic gardner
                                                                  How does institution makes their buying decision?
                                                                  1 year ago
                                                                • Institutions typically make buying decisions based on a variety of factors, including the cost and quality of the product or service, the amount of time the institution has to make a decision, the availability of the product or service, what other institutions have done, and the reputation and track record of the vendor offering the product or service. Institutions also often consider the impact of the purchase on the broader mission and goals of the institution, as well as the long-term implications of the purchase.
                                                                  • lisa
                                                                    How institucional and government buyers make their buying decision?
                                                                    1 year ago
                                                                  • Institutional and government buyers typically rely on a number of factors to make their buying decision, including personal relationships with the seller, competitive bidding, cost, quality and delivery times. In many cases, these buyers also consider how well a product or service meets the specific needs of their organization, and how a product or service fulfills government-mandated requirements. The decision-making process typically involves multiple stakeholders and levels of approval, depending on the size and complexity of the purchase. Professional buyers may also consider factors such as the reputation of the seller, their past performance, and the cost of ownership or maintenance. They may consider the terms of payment, volume discounts, delivery schedules, warranties, and any additional costs associated with the purchase.
                                                                    • feaven
                                                                      How do institution do their buying?
                                                                      1 year ago
                                                                    • Institutions typically use a variety of methods when making their purchases. This typically includes purchasing from a catalog, using a purchasing card, using an online store, or using a vendor or supplier. Institutions may also utilize reverse auctions, blanket contracts, and requests for proposal to obtain the best price for their specific needs. In some cases, the institution may negotiate directly with the vendor or supplier to obtain the best possible price for their needs.
                                                                      • Petra
                                                                        How govrnment buyer make their buying decision?
                                                                        1 year ago
                                                                      • Government buyers typically make their purchase decisions based on a number of factors. These include cost, quality, delivery time, past performance, and compliance with applicable laws, regulations, and policies. The government also assesses a potential supplier’s reputation, financial viability, and capacity to complete the contract. Additionally, government buyers may factor in evaluation criteria related to specific requirements of the bid or performance criteria such as past performance on related projects, knowledge and capability, technical capabilities, and overall cost.
                                                                        • gorbulas
                                                                          How institutional and government buyers make thire decissions?
                                                                          1 year ago
                                                                        • Institutional and government buyers typically make purchasing decisions based on careful analysis of the needs of the organization, cost considerations, availability of products and services, and the quality of the supplier’s offerings. They often use a Request for Proposal (RFP) to gather information from potential suppliers, complete in-depth assessment of the supplier’s ability to meet the organization’s needs, and select the supplier that provides the best value. Buyers may also consider such factors as the supplier’s past performance, customer service records, financial stability, history of successful projects, and compliance with regulations.
                                                                          • jonathan
                                                                            How do business buyers make their buying decisions?
                                                                            1 year ago
                                                                          • Business buyers typically make their buying decisions based on a variety of factors including price, quality, availability, delivery times, terms of sale, and reputation. They also consider factors such as the total cost of ownership, product features, ease of use, customer service, and the brand’s reputation. Business buyers may also take into account the supplier’s positioning and competitive market conditions.
                                                                            • Gavino
                                                                              What influences the government buying decision?
                                                                              1 year ago
                                                                            • The government buying decision is influenced by various factors, including economic conditions and the availability of resources. Political considerations, such as public opinion and lobbying efforts, can also have an effect.The government must also consider factors such as cost, the needs of its constituents, and the impact on the environment. Additionally, the government must consult with experts in the area and weigh their input before making a final decision.
                                                                              • Galileo Udinese
                                                                                How do institutions and government agencies do their buying?
                                                                                1 year ago
                                                                              • Government agencies typically purchase goods and services through a competitive bidding process in accordance with established procurement guidelines. This process often requires the agency to issue a request for proposals (RFP) and accept proposals from vendors. Depending on the size and scope of the purchase, the selection may be based on a number of criteria such as price, quality, technical capability, past performance, and/or compliance with applicable regulatory requirements. Once the vendor is selected, the agency usually executes a contract to formalize the purchase.
                                                                                • wolfgang
                                                                                  How goverment buyers make their buying decision?
                                                                                  1 year ago
                                                                                • Government buyers typically make their buying decisions based on the best value for their money. They consider factors such as price, quality, technical performance, and the capabilities and track record of the vendor. They also evaluate a vendor’s reputation and financial stability to ensure that the supplier can deliver on its promises. In addition, government buyers are subject to compliance regulations and must ensure that the supplier contract complies with these regulations. Government buyers also consider any existing relationships with vendors, such as longstanding partnerships or favorable reviews from other customers, that may sway their decision.
                                                                                  • d
                                                                                    How government buyers make thier buying decision?
                                                                                    1 year ago
                                                                                  • Government buyers often follow a long and involved process when making purchasing decisions. These steps may include:
                                                                                    1. Identifying the Need: This is the first step in the process. Government buyers assess the need and develop a requirements document that outlines what they are looking to purchase.
                                                                                    2. Research Suppliers: Government buyers research potential vendors and suppliers who may be able to meet their needs. This process may include reviews of relevant materials, such as industry publications, websites, and other sources of information.
                                                                                    3. Request for Quotes: Government buyers then issue a request for quote (RFQ) to potential suppliers specifying the details of what they are looking to purchase.
                                                                                    4. Evaluate and Review Vendor Quotes: Next, government buyers review the submitted quotes and evaluate them against the criteria they established in the RFQ.
                                                                                    5. Negotiate Terms: Once a suitable vendor is selected, government buyers typically negotiate pricing and payment terms with the vendor.
                                                                                    6. Award Contract: Once negotiations are complete, government buyers issue a binding contract to the successful vendor.
                                                                                    7. Monitor Performance: Government buyers monitor the vendor's performance over the course of the contract. This includes periodic reviews and assessments to ensure the vendor is meeting the terms of the contract.
                                                                                    • duenna
                                                                                      How institutional and governmental buyer's make thier decision?
                                                                                      1 year ago
                                                                                    • Institutional and governmental buyers typically make decisions based on a cost-benefit analysis. They must evaluate the total cost of a product or service, weighed against its potential return on investment or other benefits. They must also assess the quality, durability, and safety of the product or service. Furthermore, governmental buyers must be aware of any applicable policies or regulations that might affect the purchase decision. Factors such as sustainability and environmental impact may also influence the decision.
                                                                                      • matti
                                                                                        How to institutional and government buyers and buyer decision?
                                                                                        1 year ago
                                                                                      • Institutional and government buyers make decisions based on a variety of factors, including quality, price, delivery, customer service, and supplier reputation. In addition, institutional and government buyers are increasingly looking for sustainable and ethical practices from their suppliers. In order to make a successful sale to an institutional or governmental entity, suppliers should make sure they have solidified their ability to provide a quality product on time at a competitive price. They should also ensure that their customer service is top notch and that they have a strong reputation in the industry. In addition, suppliers should make sure they are able to meet the various requirements of the institution or government agency. This includes being able to meet regulations as well as being able to provide proof of sustainability and ethical practices. By demonstrating their ability to meet these requirements, suppliers can increase the chances of making a successful sale.
                                                                                        • nebyat
                                                                                          How institutional and government buyers make their buying decision?
                                                                                          1 year ago
                                                                                        • Institutional and government buyers typically make their buying decisions in a methodical and systematic way. The process usually involves an assessment of the needs of the organization, an analysis of various options for fulfilling those needs and an evaluation of the cost-effectiveness of each option. A decision is then reached based on these factors, with input from stakeholders such as senior management, user groups, and procurement personnel. In addition, institutional and government buyers often place a premium on ensuring that the products and services being acquired are compliant with various organizational policies, regulations, and laws. Depending on the size and scope of the purchase, the selection process may involve competitive bidding and/or a formal Request for Proposal (RFP) process.
                                                                                          • GALILEO
                                                                                            How Institutional and Government Market buyers make their buying decisions?
                                                                                            1 year ago
                                                                                          • Institutional and Government Market buyers make their buying decisions based on several factors, including budget, mission and strategic objectives, program and policy goals, political considerations, and the cost-benefit analysis of the purchase. They must also evaluate the quality and reliability of the product or service, the terms of the contract and the vendor’s experience and reputation. Additionally, they will often consider the vendor’s compliance with government regulations and the security of their systems and services. Procurement processes, such as Request for Proposals (RFPs), Request for Quotes (RFQs) and Request for Information (RFIs), allow government and institutional buyers to efficiently evaluate many vendors’ offers and choose the best option.
                                                                                            • Clifford
                                                                                              How government buyers make their buying decision?
                                                                                              1 year ago
                                                                                            • Government buyers typically make their purchasing decisions based on a combination of factors, including price, availability, quality, and meeting regulatory requirements. Governments often set strict standards for their purchases, and they must be met before an item can be purchased. This is typically done through a competitive bidding process, where potential vendors submit bids that are evaluated based on the criteria set by the government buyer. In addition, government buyers will often look for vendors with a good track record, making sure they have a history of successful fulfillment and customer service.
                                                                                              • carola
                                                                                                How do institutional buyers and government agencies do their buying?
                                                                                                1 year ago
                                                                                              • Institutional buyers and government agencies typically do their buying through a competitive bidding process. This process involves distributing a request for proposal (RFP) to qualified suppliers, evaluating the responses, negotiating terms and conditions, and selecting the vendor that offers the best value. Institutional buyers and government agencies may also use online purchasing tools such as reverse auctions, electronic catalogs, and electronic tendering to purchase goods and services.
                                                                                                • jessie magnus
                                                                                                  How government buyers takes decision?
                                                                                                  1 year ago
                                                                                                • Government buyers typically take decisions based on a set of factors such as topics such as cost, performance, and compliance with federal standards, regulations and policies. These decisions are usually made by a selection committee or panel of government buyers, who must then make a recommendation to their organization's senior leadership. Factors such as past performance, the number of times the vendor has provided services to the government, the quality and cost of the service, and any additional criteria set forth by the government are all taken into consideration. After all the vendor submissions have been evaluated and a decision is made, the government buyer must then contract and negotiate with the selected vendor to finalize the details of the agreement before anything is officially signed.
                                                                                                  • leah
                                                                                                    How institutional and government buyers make their buying decisions.?
                                                                                                    1 year ago
                                                                                                  • Institutional and government buyers typically have very complex and detailed processes for making buying decisions that are designed to ensure compliance with regulations, fairness and transparency throughout the process. Generally, the process for making a purchase involves some combination of the following steps: submitting a purchase request, obtaining multiple bids from vendors, evaluating bids based on criteria such as cost, quality and delivery time, negotiating with vendors, and finally selecting the winning bidder. The process may also include publicizing the solicitation, conducting background checks on vendors, and awarding contracts to the winning bidder. Additionally, institutional and government buyers must ensure that the decision-making process aligns with their organization's policies and procedures and is compliant with legal and ethical considerations.