Industrial buying behavior

Industrial buying behavior is the study of how organizations make decisions

about the purchase of goods and services. It is different from consumer
buying behavior in several ways. First, industrial buyers typically make more
complex purchases than consumer buyers. Second, industrial buyers are
often influenced by more factors, such as the price, quality, and delivery
time of the product or service. Third, the decision-making process for
industrial purchases is often more formal and involves more people.

There are four main types of industrial buying situations:

* **New task** purchases are made when an organization needs a product

or service for the first time.

* **Straight rebuy** purchases are made when an organization reorders the

same product or service from the same supplier.

* **Modified rebuy** purchases are made when an organization changes

some of the specifications of a product or service that it has already
purchased.

* **Delloyed rebuy** purchases are made when an organization decides to

stop using a product or service that it has previously purchased.

The decision-making process for industrial purchases can vary depending on

the type of purchase. However, there are some common steps that are
involved in most cases. These steps include:
1. **Problem recognition:** The first step is for the organization to
recognize that it has a need for a product or service.

2. **Specifications development:** The next step is to develop the

specifications for the product or service that is needed.

3. **Supplier search:** The organization then searches for suppliers that can
meet its specifications.

4. **RFP development:** The organization may develop a request for

proposal (RFP) to solicit bids from potential suppliers.

5. **Supplier selection:** The organization then selects a supplier.

6. **Order placement:** The organization places an order with the supplier.

7. **Order follow-up:** The organization follows up with the supplier to

ensure that the order is delivered on time and meets the specifications.

The industrial buying process can be complex and time-consuming. By

understanding the factors that influence industrial buying behavior,
businesses can develop marketing strategies that are more likely to be
successful.

Here are some of the factors that influence industrial buying behavior:

* **The nature of the product or service:** The type of product or service

that is being purchased can have a significant impact on the buying process.
For example, the buying process for a complex product, such as a piece of
machinery, will be more complex than the buying process for a simple
product, such as a stapler.
* **The size of the purchase:** The size of the purchase can also affect the
buying process. A large purchase, such as a new factory, will require a more
formal and complex buying process than a small purchase, such as a new
computer.

* **The urgency of the purchase:** The urgency of the purchase can also
affect the buying process. A purchase that is needed immediately will
require a faster and more informal buying process than a purchase that can
be made at a later date.

* **The risk involved in the purchase:** The risk involved in the purchase
can also affect the buying process. A purchase that is considered to be risky,
such as a new technology, will require a more thorough and careful buying
process than a purchase that is considered to be less risky.

* **The buyer's personality:** The buyer's personality can also affect the
buying process. Some buyers are more risk-averse than others, and some
buyers are more decisive than others.

* **The organizational culture:** The organizational culture can also affect

the buying process. Some organizations have a more formal and structured
buying process than others.

By understanding the factors that influence industrial buying behavior,

businesses can develop marketing strategies that are more likely to be
successful. For example, a business that is selling a complex product should
focus on educating potential buyers about the product and its benefits. A
business that is selling a product that is considered to be risky should focus
on providing potential buyers with information about the risks involved.