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Organizational Buying Behaviour: Manish Singhal Nikunj Vyas Hussain

This document discusses organizational buying behavior and the factors that influence it. It describes the organizational buying process, which involves problem recognition, determining specifications, searching for suppliers, selecting suppliers, and post-purchase evaluation. Key factors that influence organizational buying include environmental factors like regulations; organizational factors like structure and people; interpersonal factors like buying center roles; and individual factors like motivation and perception. There are three main types of buying situations: new tasks that require extensive information gathering; modified rebuys that involve limited reevaluation; and straight rebuys that require little new information. The level of analysis in buying decisions can range from causal purchases with no analysis to routine decisions involving some analysis.

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29 views

Organizational Buying Behaviour: Manish Singhal Nikunj Vyas Hussain

This document discusses organizational buying behavior and the factors that influence it. It describes the organizational buying process, which involves problem recognition, determining specifications, searching for suppliers, selecting suppliers, and post-purchase evaluation. Key factors that influence organizational buying include environmental factors like regulations; organizational factors like structure and people; interpersonal factors like buying center roles; and individual factors like motivation and perception. There are three main types of buying situations: new tasks that require extensive information gathering; modified rebuys that involve limited reevaluation; and straight rebuys that require little new information. The level of analysis in buying decisions can range from causal purchases with no analysis to routine decisions involving some analysis.

Uploaded by

singhal6719
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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Organizational Buying

Behaviour

Manish Singhal
Nikunj Vyas
Hussain
Nature of Organizational Buying
 Def – organizational buying is the decision
making process by which organizations establish
the need for purchased products and services,
and identify, evaluate, choose among alternative
brands and suppliers.
 Organizational buying is in some ways similar to
consumer buying since it is not ‘organizations’
making the buying decisions but people within
those organizations.
 Purpose of organizational buying – goals differ
for organizational buying from consumer buying.
Factors Influencing Organizational Buying
Behavior
Environmental
Factors

Organizational
Factors
Organizational
Buying
Behavior
Interpersonal / Group
Factors

Individual
Factors
Factors ….contd.
1. Environmental factors
 Physical – climate & geographical location
 Technological – level of technological development defines types
of goods & services
 Economic – affected by price & wage conditions, money and
credit availability, consumer demand, etc
 Political – country trade agreements, tariff barrier, lobbying
activities, defense spending, etc
 Legal – local, state, & federal legal and regulatory environment.
 Ethical – major importance in the buyer-salesperson relationship
 Cultural – values shared by members and which influence them in
their buying behavior.
2. Organizational factors
 Tasks – may be classified in different ways
such as by purpose, level of expenditure, type
of good or service purchased, etc.
 Structure – both formal and an informal str.
 Technology – may influence not only what is
bought but the buying decision process itself.
 People – people involved in the purchasing
situation will be a major determinant of the org.
buying process.
3. Interpersonal factors
 The buying centre – comprised of those people
in the org. who interact during the buying
decision process. This decision unit may vary in
size based on – how novel, complex and
important the purchase decision is and how
centralized, formalized and specialized the org.
is.
 Buying centre roles – initiators, influencers,
buyers, deciders, gatekeepers
 Power relationships
4. Individual factors
 Motivation
 Perception
 Learning
2. General
1. Problem 3. Product
Description
Recognition Specifications
of Need

5. Proposal request - Acquisi


4. Supplier / vendor Organizational
and Analysis
Search Buying Process of Proposals

7. Selection 8. Performance
6. Supplier / vendor
of Review / Post purchase
Selection
Order Routine Evaluation
Three Buying Decision Situations
(slide 1 of 4)

1. New task
2. Modified rebuy
3. Straight rebuy
Three Buying Situations
1. New Task
 New task—the problem or need is totally
different from previous experiences.
 Significant amount of information is required.
 Buyers operate in the extensive problem
solving stage.
Three Buying Situations
2. Modified Rebuy
 Modified rebuy—decision makers feel
there are benefits to be derived by
reevaluating alternatives.
 Most likely to occur when displeased with the
performance of current supplier.
 Buyers operate in the limited problem solving
stage.
Three Buying Situations
3. Straight rebuy
 Straight rebuy—the problem or need is
a recurring or continuing situation.
 Buyers have experience in the area in
question.
 Require little or no new information.
 Buyers operate in the routine problem solving
stage.
Buying Decision Approaches

Causal purchases…involve no information search or analysis.

Routine low priority…decisions are more important and


involve a moderate amount of analysis.
Yo u
an k
T h

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