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Sheth Model On Industrial Buying Behaviour

The Sheth Model proposes conceptualizing industrial buying decisions as involving three categories: 1) systematic research on purchasing policies and practices, 2) reports and observations of industrial buyers, and 3) analyses of theories, models, and research reports. The model can be used to broaden research visions, build management information systems, and generate new hypotheses. It considers buying decisions as involving autonomous, joint, or company-specific processes that are influenced by company-specific factors like size and centralization, as well as product-specific factors like risk, type of purchase, and time pressures.

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Tushar Agarwal
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1K views

Sheth Model On Industrial Buying Behaviour

The Sheth Model proposes conceptualizing industrial buying decisions as involving three categories: 1) systematic research on purchasing policies and practices, 2) reports and observations of industrial buyers, and 3) analyses of theories, models, and research reports. The model can be used to broaden research visions, build management information systems, and generate new hypotheses. It considers buying decisions as involving autonomous, joint, or company-specific processes that are influenced by company-specific factors like size and centralization, as well as product-specific factors like risk, type of purchase, and time pressures.

Uploaded by

Tushar Agarwal
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 PPTX, PDF, TXT or read online on Scribd
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Sheth Model on Industrial Buying Behaviour

Introduction
Industrial market research generates large data banks on organizational buyers, very little from the existing data seems helpful to management. What is needed before more data is collected is the realistic conceptualization and understanding the process of industrial buying decisions. To understand this Jagdish Sheth proposed a model.

3 Categories of organizational behavior


1. Systematic empirical research on buying policies and practices of purchasing agents & other buyers. 2. Reports and observations of Industrial Buyers. 3. Books, Articles which analyze theories models and reports on the buying

Use of Sheth Model


3ways
To broaden the vision of research on organsational buying behaviour Act as a catalyst for building MIS To generate the new hypothesis for future research on industrial buying behaviour.

Purchasing agents Engineers Users Others

Autonomous Decisions

Joint Decisions Buying Process

Company Specific

Product Specific

Company Specific Factors


Company Orientation
Production -> Production Personal

Company Size
Large corporation -> Joint Decision

Degree of Centralization
Greater degree -> Less Joint Decision

Product Specific Factor


Perceived risk
Uncertainty in buying situation

Type of Purchase
A Lifetime Capital Expenditure

Time Pressure
Delegated to one party rather than decided jointly

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