Organisation Rational Behaviour

Topics: Decision making, Risk, Management Pages: 6 (1814 words) Published: November 17, 2011

The aim of this paper is to determine/examine how buying behaviour in the organization point of view more rational than consumer behaviour, that is played by the type of the organization market and making the right call for buying decision in the matters of organization strategic. Buyer behaviour itself can be referred to the decision processes and action of people involved in buying and using product (Dibb et al, 2001, p.107). It also can be defined as the activities and decision processes that involves in choosing between alternatives, procuring and using products or services. These buying determinations are mad by individual or group such as a committee in the industrial organization. Furthermore, we will elaborate how this behaviour viewed from two different perspectives. The contribution of this essay lies in the attempt to also introduce a new task process to the organization, which in the process has a key component influencing the management decision and analyse the changes pertaining the overall generic model of organizational buying behaviour under different circumstances. To put it briefly, the essay aims to add much more specific to existing model by delineating the process depending on the specific task as a consequence of having varied quality product in the market. This essay is structured in the following way: the first section will gives a comprehensive review on organization buying behaviour (in this case, New task); the second section gives exhaustive the decision behaviour process of consumer and organization, followed by the case; the third section presents marketing strategies involvement for new task purchase; the fourth section we finally conclude the paper.

Organization buying behaviour

In the organization, it’s known four types of organizational market, which are industrial market, reseller market, government market and institutional markets (Jobber D 2010, p.146). Which one of them has different buying situational. There are 3 different type of buying situations, which are: New Task; Modified Rebuy and Straight Rebuy (Dibb et al 2001, p.148). In the case of New Task, generally a significant amount of information is required to solve the problem and search. It involves an widespread difficulty work out atmosphere. The buying influencers and decision makers lack well defined criteria for evaluation of alternatives. As well as the liable connection in the direction of any option. As identified by Narayana (2011) In this situation, the buyer is buying the product for the first time, as the cost of the product or consumption value becomes higher, more number of executives are involved in the process. The stages of awareness, interest, evaluation, trial, and adoption will be there for the products of each potential supplier. Moreover, the purchase cycle from the first recognizing the need to placement of the order may become very time consuming (Types of Business Purchase Decisions 2011). Only the products that pass all the stages will be on the approved list and price competition will follow subsequently. As a strategy guideline, suppliers should take part actively in the preliminary stages of the procurement procedure collect all the information on the relate problems faced by the organization and offer proposals to meet the requirements respectively. As this essay focus on new task purchase, some influence factors need to be added on to the management consideration. Such as: timing complexity, criteria and risk. Risk will be highly important, as we are dealing with, both new product and economic value. the management team will have cost, schedule, and technical objectives that are peculiar to the task they are trying to accomplish(Organizational Risk Management 2011). Risks might affect the organization's successful implementation of a new line of product approach as well with the organization economic standpoint, thus risks should be administered...
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