MODELS OF INDUSTRIAL BUYING BEHAVIOUR

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are two models to explain the industrial buying behaviour: (i) The Webster and wind model (ii) The Sheth model

WEBSTER AND WIND MODEL
ENVIRONMENTAL VARIABLES ‡Physical ‡Technological ‡Economic ‡Political & legal ‡Cultural ‡Customer demands ‡Supplier information ORGANISATIONAL VARIABLES ‡Objectives/goals ‡Organisation structure ‡Purchasing policies & procedures ‡Evaluation & reward system

BUYING CENTRE VARIABLES ‡Authority ‡Size ‡Key influencers ‡Interpersonal relationship

ORGANISATIONAL BUYING DECISIONS ‡Choice of supplier ‡Delay decision & search for more information ‡Make or lease or buy ‡Do not buy

INDIVIDUAL VARIABLES ‡Personal goals ‡Education ‡Experience ‡Value ‡Lifestyle ‡Income ‡Job position

SHETH MODEL
Component 1 Difference among individual buyer caused by factors: ‡Background of individuals ‡Active search ‡Perceptual distortion ‡Satisfaction with past purchase Component 2
Variables that determine if the buying decision is autonomous or joint: (A) Product specific factors, including time pressure, perceived risk (B) Company specific factors ,including Company size,company orientation

Component 3

Situational factors

Methods used for conflict resolution in joint decision making process: ‡Problem solving ‡Persuasion ‡Bargaining ‡politicking

Supplier or brand choice

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