Organizational Buying Behaviour
By: Abhisek Paul
Organizational Buying Behaviour
“The decision making process by which formal
organizations establish the need for products
and services to be purchased, evaluate and
choose among alternative brands and
suppliers.”
Characteristics of Organizational Buying
Behaviour.
• Fewer, larger buyers.
• Derived Demand.
• Professional Purchasing.
• Direct Dealings – Large Purchaser of materials,
no intermediaries.
• Multiple purchase influences.
2. General
Description of 3. Product
1. Problem
Need Specifications
Recognition
5. Acquisitions
4. Supplier Organizational and Analysis of
Search Buying Process. Proposals.
6. Supplier 7. Selection of 8. Performance
Selection Order Routine Review
Buying Situations.
1. New Buy:
Where the need is totally different from
previous experiences.
Significant amount of information required.
Buyers operate in the extensive problem solving
stage.
Buying Situations.
2. Modified Rebuy:
Decision makers feel there are benefits to be
derived by re-evaluating alternatives.
Most likely to occur when displeased with the
performance of current supplier.
Buyers operate in the limited problem solving
stage.
Buying Situations.
3. Straight Rebuy:
When the need is a recurring or continuing
situation.
Buyers have experience in the area in question.
Require little or no new information.
Buyers operate in routine problem solving stage.
Participants in Business Buying Models
• Initiators – One who realises of Need.
• Users – One who uses the products and services.
• Influencers – Technical Personnel and engineers who makes
available, the information.
• Deciders – The Management who decides on the purchases.
• Approvers – The Top Management, who approves the
proposal.
• Gatekeepers – One who controls the internal information
flow and inflow of new information.
Forces Influencing Organizational Buying
Behaviour.
Organizational Buying Behaviour
Environmental Buying
Organizational Forces Group Forces Individual Forces
Forces
•Economic Outlook: •Goals, Objectives & •Roles and Patterns •Job Function and past
Domestic & Global Strategies of interaction of experiences.
•Technological Change •Organizational buying decision
•Global Trade Position of Purchasing participants.
Relations
Thank You.
Abhisek Paul
