Sheth Model on Industrial Buying Behaviour

Introduction
Industrial market research generates large data banks on organizational buyers, very little from the existing data seems helpful to management. What is needed before more data is collected is the realistic conceptualization and understanding the process of industrial buying decisions. To understand this Jagdish Sheth proposed a model.

3 Categories of organizational behavior

1. Systematic empirical research on buying policies and practices of purchasing agents & other buyers. 2. Reports and observations of Industrial Buyers. 3. Books, Articles which analyze theories models and reports on the buying

Use of Sheth Model

3ways
To broaden the vision of research on organsational buying behaviour Act as a catalyst for building MIS To generate the new hypothesis for future research on industrial buying behaviour.

Purchasing agents Engineers Users Others

Autonomous Decisions

Joint Decisions Buying Process

Company Specific

Product Specific

Company Specific Factors

Company Orientation
Production -> Production Personal

Company Size
Large corporation -> Joint Decision

Degree of Centralization
Greater degree -> Less Joint Decision

Product Specific Factor

Perceived risk
Uncertainty in buying situation

Type of Purchase
A Lifetime Capital Expenditure

Time Pressure
Delegated to one party rather than decided jointly