Organisational

Buying Behaviour

Presented By
Amar Saraf
Mehul Mota
Viplove Singh
Industrial Marketing
• Business-to-Business (B2B) and Organizational
Marketing.
• The creation and management of mutually beneficial
relationships between organizational suppliers and
organizational customers.
• Customer can be private firm, public agency, or nonprofit
organization.
Organisational Buying
• In this sense, they define organisational buying
behaviour as the decision making process by which
formal organisations establish the need for purchased
products and services and identify, evaluate and
choose among alternative brands and suppliers.
The Phases of Buying Decision Making

• Need recognition.
• Definition of the characteristics and quantity
of item needed
• Development of the specification to guide
the procurement.
• Search for and qualification of potential
sources.
• Acquisition and analysis of proposals.
• Evaluation of proposals and selection of
suppliers.
• Selection of an order routine.
• Performance feedback and evaluation.

Organisational Buying Behaviour Some Typical
Characteristics

• Organisational buying is a multiperson buying activity.

• Users
• Influencers
• Deciders Buyers
• Gatekeepers
• Specifiers
• It is a formal activity which follows the procedures laid
down in an organisation.
• Longer time lag between efforts and results.
• Rational but also emotional activity.
• The uniqueness of organisations.
•
WHO ARE THE ORGANISATIONAL
CUSTOMERS?
Major Influences on Organizational Buying
Behaviour
 Influences on Business Buyers

• Demand level
 Major Influences • Economic outlook


• Interest rates
• Environmental • Technological change
• Organizational • Politics/regulations
• Interpersonal • Competition
• Concerns for social
• Individual responsibility
 •
 Influences on Business Buyers

 Major Influences • Objectives

• Policies


• Environmental • Procedures
• Organizational • Organizational
• Interpersonal structures
• Individual • Systems

 Influences on Business Buyers

 Major Influences • Interests

• Authority


• Environmental • Status
• Organizational • Empathy
• Interpersonal • Persuasiveness
• Individual

 Influences on Business Buyers

 Major Influences • Age


• Income
• Environmental • Education
• Organizational • Job position
• Personality
• Interpersonal
• Risk attitudes
• Individual • Culture

 Organizational Buying

• Routine reorders
 Buying Situations from approved


vendor list
• Straight rebuy • Low involvement,
• Modified rebuy minimal time
• New task commitment

• Example: copier
paper
•
 Organizational Buying

 Buying Situations • Specifications,

 prices, delivery
terms or other
• Straight rebuy aspects require
• Modified rebuy modification
• Moderate level of
• New task involvement and
 time commitment
• Example: desktop
computers
 Organizational Buying

 Buying Situations • Purchasing a product

 or service for the
first time
• Straight rebuy • High level of
• Modified rebuy involvement and
time commitment;
• New task multiple influences

• Example: selecting a
web site design
firm or consultant
Organisational Buying Behaviour: Some
Models
Buy Classes

Buy Phases New Task Modified Rebuy Straight Rebuy

1. Problem recognition Yes Maybe No

2. General Need Description Yes Maybe No

3. Product specification Yes Yes Yes

4. Suppliers Search Yes Maybe No

5. Proposal Solicitation Yes Maybe No

6. Supplier Selection Yes Maybe No

7. Order Routine Specification Yes Maybe No

8. Performance review Yes Yes Yes

The Buy Grid Model of Organisational Buying Behaviour

The Selection of a Supplier
 Ranking Order Attribute
• Reliability of delivery dates promised.
• Price.
• Supplier's flexibility.
• Consistency in dealings of the supplier.
• Rejection rates.
• Kind of manufacturing facilities.

• Efficient follow-up of the order.

• Persistent efforts to improve the quality of services.

• Prompt attention to enquiries.

• Suppliers overall reputation.

CASE
Thank You