Organisational Buying Behaviour

Organizational Buying Behavior

Organizational buying termed as the decision-
making process by which formal organizations
establish the need for purchase of product or
service, identify, evaluate, and choose among
alternatives brands and suppliers.
 Organizational Buyer Behavior
• Vertical Market represents the opportunities for
the product or service to be sold virtually all
organizations in the same industry.
• Horizontal market represents the opportunities in
which product or service is sold to wide array of
industries.
• Compare the organizational and
consumer buying behavior
 Difference in Organizational & Consumer
Buying
• The major differences between organizational and
consumer buying are clubbed under three heads
as:
– Market Structure & Demand
– Buyer Characteristics
– Decision Process & Buying Patterns
• Know the members of organizational
buying decision
 Members of Organizational Buying
Decisions

• Buying Center or Decision Making Unit

comprises group of individual experts for
organizational buying.
 Members of Organizational Buying
Decisions
• Initiators /Users use the product once it has been
acquired and subsequently evaluate its performance.
• Influencers may directly or indirectly influence the buying
process, while helping to set the technical specifications
for the proposed purchase.
• Deciders are those who make purchasing decisions.
• Buyers select suppliers and manage the process.
• Gatekeepers have the potential to control the type and
flow of information to the organization.
 Organizational Buying Decisions

• Different buying situations as part of

Buygrid Model are also referred as buy-
classes such as:
– New Task relates to first time buy of any product or
service by the organization.
– Modified Re-buy represents the purchases through
their buyer(s) in which certain modifications need to be
incorporated in future buy.
– Straight Re-buy situations are rather routine
purchases under similar terms of buy.
Organizational Buying Process

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• Understand the different factors
influencing the organizational buying
Organizational Buyer Behavior Influncers

• Internal Influences relates with organizational

factors responsible for organizational buying.
•External Influencers refers to the various external
environmental factors, which are affecting the
organizational buying decisions.