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    Organizational buying involves a complex decision making process where organizations identify needs, evaluate alternatives, and select products and services to purchase. It differs from individual consumer buying in several key ways. Organizational buyers represent groups, have more technical knowledge, and make rational, formal decisions. The organizational buying process is longer and more complex than individual consumer purchases, involving multiple stakeholders within the buying organization. Many environmental, organizational, interpersonal, and individual factors influence organizational buying behavior. The decision process typically includes problem recognition, specification, vendor search, selection, and post-purchase evaluation. Attributes like reputation, price, and service are important factors when evaluating suppliers.

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    UNIT 3 CB

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    Organizational buying involves a complex decision making process where organizations identify needs, evaluate alternatives, and select products and services to purchase. It differs from individual consumer buying in several key ways. Organizational buyers represent groups, have more technical knowledge, and make rational, formal decisions. The organizational buying process is longer and more complex than individual consumer purchases, involving multiple stakeholders within the buying organization. Many environmental, organizational, interpersonal, and individual factors influence organizational buying behavior. The decision process typically includes problem recognition, specification, vendor search, selection, and post-purchase evaluation. Attributes like reputation, price, and service are important factors when evaluating suppliers.

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    11 views20 pages

    Unit 3 CB

    Uploaded by

    yuvaraj
    Organizational buying involves a complex decision making process where organizations identify needs, evaluate alternatives, and select products and services to purchase. It differs from individual consumer buying in several key ways. Organizational buyers represent groups, have more technical knowledge, and make rational, formal decisions. The organizational buying process is longer and more complex than individual consumer purchases, involving multiple stakeholders within the buying organization. Many environmental, organizational, interpersonal, and individual factors influence organizational buying behavior. The decision process typically includes problem recognition, specification, vendor search, selection, and post-purchase evaluation. Attributes like reputation, price, and service are important factors when evaluating suppliers.

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    ORGANISATIONAL

    BUYING BEHAVIOUR
    THE NATURE OF ORGANISATIONAL BUYING

    Organisational buying, is the decision making process by which


    organizational establish the need for purchased products and services,
    and identify, evaluate, and choose among alternative brands and
    suppliers.
    Organisational Buyers Vs Final Consumers

    • Market structure and Demand


    • Geographical concentration
    • Fewer, larger buyers
    • Vertical or Horizontal markets
    • Derived demand
    • Inelastic demand
    • Fluctuating demand
    • Buyer Characteristics
    • Group Involvement
    • Technical knowledge
    • Rational motivations
    Organisational Buyers Vs Final Consumers

    • Decision Process and Buying Patterns


    • Formality
    • Complexity
    • Lengthy negotiation
    • Multiple suppliers
    • Large orders
    • Infrequent purchase
    • Direct buying
    • Reciprocity
    • Importance of service
    INFLUENCE ON ORGANIZATION BUYER BEHAVIOUR

    • Environmental Factors
    • Physical
    • Technological
    • Economic
    • Political
    • Legal
    • Ethical
    • Cultural
    • Organisational Factors
    • Tasks
    • Structure
    • Technology
    • People
    INFLUENCE ON ORGANIZATION BUYER BEHAVIOUR

    • Interpersonal factors
    • The buying center
    • Buying center roles
    • Power relationships
    • Individual Factors
    • Motivation
    • Perception
    • Learning
    Types of Decision Situations
    • New Task situations: First time or unique purchase require much
    gathering of information and careful establishment of the criteria on
    which to evaluate the product for purchase.
    • Modified rebuy situations: It occur when buyers reevaluate and may
    make changes in their available purchase alternatives.
    • Straight rebuy situations: Routing purchases usually under similar
    terms of sale to meet continuing or recurring requirements.
    Activity in purchase process
    • Determination and description of characteristic and quantity of items
    to be purchased
    • Search for and qualification of sources
    • Acquisition and analysis of proposals
    • Evaluation of offers, suppliers
    • Negotiation
    • Selection of order routing and performance evaluation
    • Length of process
    • Source of problem/opportunity recognition
    • Initiator of purchase
    • Source of contact with supplier
    • Membership in decision making unit
    ORGANISATIONAL BUYER’S DECISION PROCESS

    • Problem Recognition
    • Need Description
    • Product Specification
    • Vendor Search
    • Proposal Request
    • Vendor Selection
    • Purchase Routine Selection
    • Post-purchase Evaluation
    Attributes used to evaluate Suppliers
    • Overall reputation of the supplier
    • Financing terms
    • Supplier’s flexibility in adjusting to your company’s needs
    • Experience with the supplier in analogous situations
    • Technical service offered
    • Confidence in the salespeople
    • Convenience of placing the order
    • Data on reliability of the product
    • Price
    • Technical specifications
    • Ease of operation or use
    • Preference of principal user of the product
    • Training offered by the supplier
    • Training time required
    • Reliability of delivery date promised
    • Ease of maintenance
    • Sales service expected after date of purchase

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