Mr usman bappa
Those who supply goods and services to consumer markets are themselves in need of goods and services to run their business. These organizations - producers, resellers, and government make up vast marketing organizations that buy a large variety of products, including equipment, raw material, labor and other services. Some organizations sell exclusively to other organizations and never come into contact with consumer buyers.
Despite the importance of organizational markets, far less research has been conducted on factors that influence their behavior than on factors that influence consumers. However, we can identify characteristics that distinguish organizational buying from consumer buying and typical steps in the organizational buying process.
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•Characteristics of Organizational Buying
Many elements of the sociocultural environment discussed earlier influence organizational as well as consumer buying, but some additional forces are salient (relevant) only in the organizational setting. In particular, each organization has its own business philosophy that guides its actions in resolving conflicts, handling uncertainty and risk, searching for solutions, and adapting to change. For example, an organization may rely on a conservative purchase strategy in an attempt to maintain their status quo. •Five characteristics mark the organizational buying process:
1. In organizations, many individuals are involved in making buying decisions.
2. The organizational buyer is motivated by both rational and quantitative criteria dominant in organizational decisions; the decision makers are people, subject to many of the same emotional criteria used in personal purchases.
3. Organizational buying decisions frequently involve a range of complex technical dimensions. A purchasing agent for Volvo Automobiles, for example, must consider a number of technical factors before ordering a radio to go into the new model. The electronic system, the acoustics of the
Despite the importance of organizational markets, far less research has been conducted on factors that influence their behavior than on factors that influence consumers. However, we can identify characteristics that distinguish organizational buying from consumer buying and typical steps in the organizational buying process.
Loading...
•Characteristics of Organizational Buying
Many elements of the sociocultural environment discussed earlier influence organizational as well as consumer buying, but some additional forces are salient (relevant) only in the organizational setting. In particular, each organization has its own business philosophy that guides its actions in resolving conflicts, handling uncertainty and risk, searching for solutions, and adapting to change. For example, an organization may rely on a conservative purchase strategy in an attempt to maintain their status quo. •Five characteristics mark the organizational buying process:
1. In organizations, many individuals are involved in making buying decisions.
2. The organizational buyer is motivated by both rational and quantitative criteria dominant in organizational decisions; the decision makers are people, subject to many of the same emotional criteria used in personal purchases.
3. Organizational buying decisions frequently involve a range of complex technical dimensions. A purchasing agent for Volvo Automobiles, for example, must consider a number of technical factors before ordering a radio to go into the new model. The electronic system, the acoustics of the