Organizational Buying Behaviour16th March 2023 1 By indiafreenotes
Organizational buying behavior refers to the process by which organizations make purchasing decisions. It involves a series of stages, starting from problem identification, followed by information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Understanding organizational buying behavior is essential for businesses that market products and services to other businesses, as it allows them to develop effective marketing strategies and tailor their offerings to meet the specific needs of their target customers.
Elements of organizational buying behavior include:
- Decision-making units: Organizational buying behavior typically involves a group of decision-makers, rather than a single individual. This group may include people from different departments or functional areas of the organization, and each person may have a different role or influence in the decision-making process.
- Buying center: The group of decision-makers involved in organizational buying behavior is often referred to as the buying center. The buying center may include initiators (who identify the need for the product or service), users (who will use the product or service), influencers (who have an impact on the decision), and decision-makers (who make the final decision).
- Rational decision-making: Organizational buying behavior is often based on a rational decision-making process. This means that decision-makers will typically consider a range of factors, such as cost, quality, delivery time, and after-sales service, in order to make an informed decision.
- Relationship building: Relationship building is often an important part of organizational buying behavior. This involves developing long-term relationships with suppliers and vendors in order to secure favorable pricing, terms, and conditions, as well as ongoing support and service.
- Supplier evaluation: Organizations will often evaluate potential suppliers based on a range of criteria, including price, quality, delivery times, and after-sales service. This evaluation process is often rigorous and may involve requests for proposals (RFPs), supplier audits, and other types of assessments.
- Negotiation: Negotiation is often an important part of the organizational buying process. This may involve negotiating on price, terms and conditions, or other aspects of the agreement. Effective negotiation requires a good understanding of the needs and preferences of both parties, as well as the ability to build trust and find mutually beneficial solutions.
Organizational Buying Behaviour steps
Organizational buying behavior typically involves several steps, which can be summarized as follows:
- Problem Recognition: The first step in the organizational buying process is recognizing a problem or need. This may arise from internal factors, such as a need to replace or upgrade existing equipment, or external factors, such as changes in the market or regulatory environment.
- Information Search: Once a problem has been identified, the next step is to gather information about potential solutions. This may involve searching for information internally, such as consulting with colleagues or reviewing existing data, or externally, such as conducting research online, attending trade shows or conferences, or consulting with vendors or suppliers.
- Evaluation of Alternatives: After gathering information, the buying center will evaluate different alternatives. This may involve developing a list of potential suppliers or vendors, and then assessing each option based on criteria such as price, quality, delivery times, after-sales service, and other factors that are important to the organization.
- Purchase Decision: Once the evaluation of alternatives is complete, the buying center will make a purchase decision. This may involve negotiating with suppliers or vendors on price and other terms and conditions, as well as obtaining approval from higher-level executives or stakeholders.
- Post-Purchase Evaluation: After the purchase is made, the buying center will evaluate the performance of the product or service, as well as the performance of the supplier or vendor. This may involve assessing factors such as delivery times, quality, after-sales service, and overall satisfaction with the purchase.
CategoryLucknow University BBA Notes
TagsAcquisitions and Corporate Restructuring ADVERTISING AND BRAND MANAGEMENT bba free book download BBA202 Business Analytics BBA204 Financial Management BBA206 Corporate Governance BBA208 Income Tax Law and Practice BBA211 Business Research Methodology BBA216 Financial Markets and Institutions BBA217 Environmental Studies BBA301 Goods and Services Tax BBA303 Business Policy and Strategy BBA305 Information Systems Management BBA308 Advertising and Sales Promotion BBA313 Financial Modeling BCOM101 Management Process & Organizational Behavior BCOM102 Business Mathematics BCOM103 Financial Accounting BCOM104 Business Laws BCOM105 Micro Economics BCOM106 Macro Economics BCOM107 Business Communication BCOM108 Cost Accounting BCOM109 Computer Applications BCOM110 Business Studies BCOM201 Marketing Management BCOM202 Fundamentals of Financial Management BCOM203 Management Accounting BCOM204 Auditing BCOM205 Human Resource Management BCOM206 Corporate Accounting BCOM207 Business Ethics & Corporate Social Responsibility BCOM208 Indian Economy BCOM209 Business Statistics BCOM210 Financial Modeling BCOM214 Research Methodology BCOM301 Income Tax Law and Practice BCOM302 Project Management BCOM303 Entrepreneurship Development BCOM304 Goods & Services Tax BCOM305 Information Systems Management BCOM306 E-Commerce BCOM311 Investment Management BCOM313 Financial Markets and Institutions BCOM315 Sales and Distribution Management BCOM317 Advertising and Brand Management BCOM318 Services Marketing BCOM319 Indian Relations and Labour Laws BCOM320 International Business Management BCOM322 Compensation Management BEHAVIORAL FINANCE BUSINESS INTELLIGENCE AND APPLICATIONS BUSINESS MARKETING BUSINESS POLICY & STRATEGY BUSINESS RESEARCH COMPENSATIONAL MANAGEMENT CORPORATE TAX PLANNING DATABASE MANAGEMENT DECISION SCIENCE MBA NOTES Design Thinking Notes DIGITAL MARKETING BBA NOTES E-BUSINESS ELECTION DATE ELECTION RESULT ENTERPRISE SYSTEMS Ethics and Social Responsibility of Business FINANCE MANAGEMENT NOTES FINANCIAL DERIVATIVES Financial Management FLIPKART HUMAN RESOURCE Human Values & Ethics Import Policies INDIA INDIA MBA NOTES INFORMATION SYSTEMS MANAGEMENT INTERNATIONAL BUSINESS ENVIRONMENT INTERNATIONAL FINANCIAL MANAGEMENT INTERNATIONAL MARKETING INTERNET MARKETING ipu bba books download JIO PACK LABOR LAWS Learning and Development MANAGEMENT OF INTERNATIONAL BUSINESS Managerial Economics MARKETING NOTES mba free book download mba mba free book new mba books download MTIC ORGANIZATIONAL DEVELOPMENT PERFORMANCE MANAGEMENT Procedures and Documentation RESEARCH METHODOLOGY BBA MBA NOTES RETAIL MANAGEMENT SECURITY ANALYSIS AND INVESTMENT MANAGEMENT SHRM SOFTWARE PROJECT MANAGEMENT TEAM BUILDING TRAINING & DEVELOPMENT
[…] VIEW […]