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CHAPTER SUMMARY
This chapter introduces the basic theory of organizational buying, an
understanding of which is fundamental to business-to-business marketing.
It begins by looking at the organizational buying process and a number of
models of the process. It then investigates the theory of risk and
uncertainty and identifies the key factors that influence behaviour. It
concludes with a discussion of the role of purchasing which is seen as a
key area in the competitiveness of the modern industrial firm.
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2) Stat the difference between consumer buying and organizational
buying?
Ans: According to Philip kotler: Marketing is human activity directed at
satisfying needs and wants through exchange process.
Organizational Buying Behavior
Organizations often make decisions in a very similar fashion to consumers.
In fact, there has been substantial disagreement about whether the
differences in consumer decision-making and organizational decision-
making are adequate to justify separate models of decision-making for the
two.
1. Meaning: It refers to the actions of persons employed by an
organization to purchase products /services for the business. Buying
behavior is more objectives and rational.
5. Purchasing goals: Consumers buy for their own use or for use
by people close to them. Personal goals are important to
consumers when deciding what to buy.
6. Buyers-suppliers contact: Individual buyer do not keep close
and direct contact with the supplier. Direct selling is also
possible.