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Consumer Behavior: Industrial Buying

This document discusses industrial buying behavior. It outlines that organizations buy to reduce costs, make a profit, serve internal needs, and meet legal and social obligations. It notes that multiple participants are involved in the buying process, including users, influencers, buyers, deciders, and gatekeepers. Finally, it identifies factors that influence industrial buying behavior such as environmental factors, organizational policies, interpersonal relationships, and individual characteristics.

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Amarjeet Rai
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37 views

Consumer Behavior: Industrial Buying

This document discusses industrial buying behavior. It outlines that organizations buy to reduce costs, make a profit, serve internal needs, and meet legal and social obligations. It notes that multiple participants are involved in the buying process, including users, influencers, buyers, deciders, and gatekeepers. Finally, it identifies factors that influence industrial buying behavior such as environmental factors, organizational policies, interpersonal relationships, and individual characteristics.

Uploaded by

Amarjeet Rai
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Consumer Behavior

Industrial Buying

Why do organizations buy ?


To reduce costs

To make profit
To serve internal clienteles requirements

To meet social obligations


To meet legal obligations

Some key points


Participants involved in the decision making

process are people with different organizational responsibilities and hence use different criteria in the purchase decision. The organizational buyers have to operate within the framework of the policies, rules and regulations established by the organization.

Participants in the buying process


User : Very often they initiate or provide

specifications. Influencer : May be technical persons, may provide specifications, may provide information for evaluation of alternatives. Buyer : Authority to select, they may negotiate the terms. Decider : Formal or informal power in selection. Gate Keeper : They control the flow of information to others.

Characteristics of industrial markets


Fewer buyers Larger buyers Geographically concentrated buyers Derived demand Inelastic demand Fluctuating demand Professional purchasing Reciprocal buying Direct purchase Leasing

Factors influencing buying behavior


Environmental factors : Level of demand, Economic outlook, Value of money, Supply conditions, Technology improvements, Political environment, Competition labels Organizational factors : Objectives, Policies, Procedures, Organizational structure

Factors influencing buying behavior


Interpersonal : Authority, Status, Empathy, Persuasiveness. Individual Participant : Age, Income, Educational qualifications, Job position, Personality, Attitude towards risk.

Stages Of Buying Process


Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specification Performance to add to customer value

Consumer Behavior
Industrial Buying

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