CONSUMER BEHAVIOUR

TOPIC: ORGANISATIONAL BUYING

MODELS:1. MARKET RESPONSE
MODEL
2.BUY GIRD MODEL
Introduction
o Organizational buying is the decision-making
process by which formal organizations establish
the need for purchased products and services and
identify, evaluate, and choose among alternative
brands and suppliers.
o Nature of Organizational Buying 1. It involves
many persons in decision making which may be
from a range of departments or from different
management levels. 2. It is a systematic and a pre-
planned process. 3. Stretched decisions are taken.
4. Purchase for large volume is done
Characteristics features
o In organizations, many individuals are involved in
making buying decisions.
o The organizational buyer is motivated by both
rational and quantitative criteria dominant in
organizational decisions; the decision makers are
people, subject to many of the same emotional
criteria used in personal purchases.
o The organizational decision process frequently
spans a considerable time, creating a significant
lag between the marketer's initial contact with the
customer and the purchasing decision.
o Organizational buying decisions frequently
involve a range of complex technical dimensions.
A purchasing agent for Volvo Automobiles, for
example, must consider a number of technical
factors before ordering a radio to go into the new
model.
Market Response Model
• Market response models have become accepted
tools for marketing decision making in a wide
variety of industries. Companies have relied on
market response models to set prices, allocate
advertising expenditures, forecast sales, and test
the effectiveness of alternative marketing plans.
At the millennium, market response analysis was
estimated to be a $125 million sector of the
marketing research industry, proving its economic
value to marketing management.
Implications of Market Response Model
o Improving product design
o Developing and testing communication programmes
o Targeting communication programmes

Issues with Market Response Model

o Persuadable
o Sure things
o Lost causes
o Sleeping dogs
BUY GRID MODEL
• The buy grid model is a version of
a theory developed as a general model of rational
organizational design making, explaining how
companies make decisions. The buy-grid
model has three components, which are: the buy-
phases, the buy-class (buy situation) and
the buying centers.
• BUY PHASE MODEL
• Problem recognition
• General need description
• Product specification
• Supplier search
• Proposal solicitation
• Supplier selection
• Purchase routine selection
• Post purchase evaluation
Objectives
o To evaluate marketing actions and to improve the
performance of the firm in the market place, the
manager must specify objectives.
o Short – run profit
o Long- run profit
o Uncertainty-Decision tree analysis
o Multiple goals
Multi-criteria decision making
Goal programming
Trade-off analysis
Analytic hierarchy process
CONCLUSION
• As we all know that buying process in an
organizational plat an very vital role. Therefore
the organization goes through many process and
research so that it would not effect the pricing
policy of the organization.
• Therefore organization buying behavior is
important for every organization.
BIBLIOGRAPHY
o https://www.marketingbinder.com/glossary/organi
zational-buying-definition/
o http://www.opentextbooks.org.hk/ditatopic/33903
THANK YOU