BUSINESS TO BUSINESS (B2B)

Semester III
Assignment 2

TOPIC: ORGANIZATIONAL BUYER BEHAVIOUR.

Submitted To:
Prof Prakash Pandit

Submitted By:
Medha Sur
(20BSP3117)
You have just been hired as a product manager with profit responsibility
for your company brand of Industrial robot. In preparation for developing
a marketing plan, you decide to learn more about the buying behavior of
Industrial buyers in your market.

How would you go about setting objectives for this study? Discuss.

Answer: -
Industrial buying behaviour is basically the decision-making process by which formal
organizations establish the need for purchase products and services and identify, evaluate,
and choose among alternative brands and supplier. Before knowing about the profit
responsibility, it is much important to know the realistic conceptualization and understanding
of the process of industrial buying decisions as in industrial marketing, the buying process is
very difficult as compared to the consumer marketing.
In order to set the objectives to study the buying behavior of Industrial buyers:
1. The first category comprises of considerable amount of systematic empirical research
on the buying policies and practices of purchasing agents and other organizational
buyers. 
2. The second includes industry reports and observations of industrial buyers.
3. Finally, the third category consists of books, monographs, and articles which analyze,
theorize, model, and sometimes report on industrial buying activities. 

Industrial marketing purchase decisions are based on a variety of variables other than social
and psychological demands, such as product quality, availability, timely supply, acceptable
payment and other commercial terms, cost effectiveness, after-sales service, and so on. After
the initial offer made by a seller, there are negotiations and exchange of information between
both the prospective buyer and the seller’s organization.
 First, in order to explain and predict supplier or brand choice in industrial buyer
behaviour, it is necessary to conduct research on the psychology of other individuals
in the organization in addition to the purchasing agents. It is, perhaps, the unique
nature of organizational structure and behavior which leads to a distinct separation of
the consumer, the buyer, and the procurement agent, as well as others possibly
involved in the decision-making process.
 Second, most of the variables contained in the model may be categorized and
identified. While some are more complex and indirect. There is presently enough
psychometric talent in marketing research to quantify the psychology of individuals.
 Third, although considerable research has been done on the demographics of
organizations in industrial market research for example, on the turnover and size of
the company, workflows, standard industrial classification, and profit ratios
demographic and life-style information on the individuals involved in industrial
buying decisions is also needed.
 Fourth, a systematic examination of the power positions of various individuals
involved in industrial buying decisions is a necessary condition of the model. The
sufficient condition is to examine trade-offs among various objectives, both explicit
and implicit, in order to create a satisfied customer.
 Fifth, it is essential in building any market research information system for industrial
goods and services that the process of conflict resolution among the parties and its
impact on supplier or brand choice behavior is carefully included and simulated.
 Finally, it is important to realize that not all industrial decisions are the outcomes of a
systematic decision-making process. There are some industrial buying decisions
which are based strictly on a set of situational factors for which theorizing or model
building will not be relevant or useful.