Description
Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
Business Marketing
A presentation on Models of Organisational Buying Behaviour
Industrial buyers are influenced by-
1. Organisational factors (task oriented objectives) eg. Best product quality; dependable delivery; lowest price etc.
2. Personal factors (non-task objectives) eg. Promotion; increments; job security etc.
WEBSTER & WIND Model
? Developed in 1972 ? It considers 4 sets of variables which affect the buying decision making process in a firm.
Environmental Variables
Physical Technological Political & Legal Labour Unions Cultural Customer Demands Competitive Practices & Pressures Supplier Information
WEBSTER & WIND Model
Organisational Variables
Objectives/Goals Organisation Structure Purchasing Policies & Procedures Evaluation & Reward Systems Degree of Decentralisation in Purchasing
Buying Centre Variables
Authority Size Key Influences Interpersonal Ralationship Communication
Organisational Buying Decisions
Choice of Suppliers Delay Decision & Search For More Information Make, or Lease, or Buy Do Not Buy
Individual Variables
Personal Goals Education Experience Expertise Values Job Position Lifestyle Income
Conclusion: ? Model is comprehensive, generally applicable, analytical & it identifies many key variables which could be considered while developing marketing strategies by Industrial Marketers.
? Model fails to explain the specific influence of key variables.
SHETH Model
? Developed by JAGDISH N SHETH in 1973 ? Emphasises on joint decision making ? Model includes 3 components & situational factors, which determines the choice of a Supplier or a Brand in the buying decision making process in an organisation.
SHETH Model
Component 1
•Differences among individual buyers caused by factors: •Background of Individuals •Their Information Sources •Active Search •Perceptual Distortion •Satisfaction With Past Purchases
Component 2
•Variables that determine if the buying decision is autonomous or joint: •(A) Product Specific Factors, Including•Time Pressure •Perceived Risk •Type of Purchase •(B) Company Specific Factors, Including•Company Size •Company Orientation •Degree of Centralisation
Component 3
•Methods used for conflict resolution in joint-decision making process: •Problem Solving •Persuasion •Bargaining •Politicking
Situational Factors
Supplier or Brand Choice
Conclusion: ? Situational factors can be varied like economic conditions, labour disputes, mergers & acquisitions.
? This model does not explain their influence on the buying process.
doc_941078980.pptx
Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
Business Marketing
A presentation on Models of Organisational Buying Behaviour
Industrial buyers are influenced by-
1. Organisational factors (task oriented objectives) eg. Best product quality; dependable delivery; lowest price etc.
2. Personal factors (non-task objectives) eg. Promotion; increments; job security etc.
WEBSTER & WIND Model
? Developed in 1972 ? It considers 4 sets of variables which affect the buying decision making process in a firm.
Environmental Variables
Physical Technological Political & Legal Labour Unions Cultural Customer Demands Competitive Practices & Pressures Supplier Information
WEBSTER & WIND Model
Organisational Variables
Objectives/Goals Organisation Structure Purchasing Policies & Procedures Evaluation & Reward Systems Degree of Decentralisation in Purchasing
Buying Centre Variables
Authority Size Key Influences Interpersonal Ralationship Communication
Organisational Buying Decisions
Choice of Suppliers Delay Decision & Search For More Information Make, or Lease, or Buy Do Not Buy
Individual Variables
Personal Goals Education Experience Expertise Values Job Position Lifestyle Income
Conclusion: ? Model is comprehensive, generally applicable, analytical & it identifies many key variables which could be considered while developing marketing strategies by Industrial Marketers.
? Model fails to explain the specific influence of key variables.
SHETH Model
? Developed by JAGDISH N SHETH in 1973 ? Emphasises on joint decision making ? Model includes 3 components & situational factors, which determines the choice of a Supplier or a Brand in the buying decision making process in an organisation.
SHETH Model
Component 1
•Differences among individual buyers caused by factors: •Background of Individuals •Their Information Sources •Active Search •Perceptual Distortion •Satisfaction With Past Purchases
Component 2
•Variables that determine if the buying decision is autonomous or joint: •(A) Product Specific Factors, Including•Time Pressure •Perceived Risk •Type of Purchase •(B) Company Specific Factors, Including•Company Size •Company Orientation •Degree of Centralisation
Component 3
•Methods used for conflict resolution in joint-decision making process: •Problem Solving •Persuasion •Bargaining •Politicking
Situational Factors
Supplier or Brand Choice
Conclusion: ? Situational factors can be varied like economic conditions, labour disputes, mergers & acquisitions.
? This model does not explain their influence on the buying process.
doc_941078980.pptx