Two concepts related to key purchasing criteria are order qualifiers and order winners, first introduced by Terry Hill. Figure 2.1: Categories of key purchasing criteria. This can also be related to the capability of the company to deliver at the time that they had promised. For companies’ in the transportation business, this will be a key necessity in order to gain new customers. Timeliness – Some customers care greatly about how long it will take to obtain the product or service. They look for options to change the style, colour, dimensions or technical characteristics. Variety – There is a part of the market that value the opportunity to choose from a wide variety of products. Not only are we considering a product with a great design, but also, one that is long lasting and defect free. Quality – Many customers are willing to spend more in order to obtain a product with specific characteristics or brand reputation. If products are seen to be very similar to one another, the customer will choose based on price. Price – Firms need to understand how much the customer will pay for an item.
The city of Toronto may be purchasing heavy duty trucks to use in the landscaping of city parks or Toyota may be searching for a new supplier for automobile glass. The customer in many instances may be another business. It is important to keep in mind that the customer is not always a consumer purchasing a good at a store. They are the factors which customers evaluate and consider when making a product choice. We refer to these as key purchasing criteria. Įach organization needs to have a deep understanding of their customers and what drives their customers to make purchases. This is the reason behind brand loyalty, or why customers prefer one particular product or service over another.
Advertising products or services with lower prices or higher quality piques the interest of consumers. This can be gained by offering clients better and greater value. Competitive Advantage and Key Purchasing CriteriaĬompetitive advantage is the leverage a business has over its competitors. In other words, how will one firm win over customers in order to become the product or service of choice. We define competitiveness as the ability and performance of a firm to sell and supply goods and services in a given market, in relation to the ability and performance of other firms. There may have been prizes or rewards for ranking high in these competitions. We have all competed in various types of activities, perhaps in sports, or school.
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