Business Marketing

A presentation on Models of
Organisational Buying Behaviour
Industrial buyers are influenced by-

1. Organisational factors (task oriented

objectives)
eg. Best product quality; dependable delivery;
lowest price etc.

2. Personal factors (non-task objectives)

eg. Promotion; increments; job security etc.
 WEBSTER & WIND Model

 Developed in 1972

 It considers 4 sets of variables which affect the

buying decision making process in a firm.
Environmental Variables
Physical
Technological

WEBSTER & WIND Model

Political & Legal
Labour Unions
Cultural
Customer Demands
Competitive Practices & Pressures
Supplier Information

Organisational Variables
Objectives/Goals
Organisation Structure
Purchasing Policies & Procedures
Evaluation & Reward Systems
Degree of Decentralisation in Purchasing

Buying Centre Variables Organisational Buying Decisions

Choice of Suppliers
Authority Delay Decision & Search For More Information
Size Make, or Lease, or Buy
Key Influences Do Not Buy
Interpersonal Ralationship
Communication

Individual Variables
Personal Goals
Education
Experience
Expertise
Values
Job Position
Lifestyle
Income
Conclusion:

 Model is comprehensive, generally applicable,

analytical & it identifies many key variables
which could be considered while developing
marketing strategies by Industrial Marketers.

 Model fails to explain the specific influence of

key variables.
 SHETH Model
 Developed by JAGDISH N SHETH in 1973

 Emphasises on joint decision making

 Model includes 3 components & situational

factors, which determines the choice of a
Supplier or a Brand in the buying decision
making process in an organisation.
 SHETH Model

Component 1 Component 2 Component 3

Differences Variables that
determine if the Methods
among
individual
buying decision is used for
autonomous or
buyers caused joint: conflict
by factors: (A) Product resolution
Specific Factors,
Background of
Including-
in joint- Supplier or
Individuals
Time Pressure decision Situational
Their Perceived Risk making Brand
Information Type of Purchase Factors
Sources (B) Company process: Choice
Active Search Specific Factors, Problem
Perceptual Including-
Company Size Solving
Distortion
Satisfaction
Company Persuasion
Orientation
With Past Degree of
Bargaining
Purchases Centralisation Politicking
Conclusion:

 Situational factors can be varied like economic

conditions, labour disputes, mergers &
acquisitions.

 This model does not explain their influence on

the buying process.