Buying Behaviour

Topics: Decision making, Risk Pages: 4 (927 words) Published: February 29, 2012

Buying behavior can be defined as the activities and decision process that involves in choosing between alternatives, procuring and using products and services The behavior of buyers is broadly categories into two types 1) Endogenous factor (These influence are need and motives, learning, attitude, personality and self-concept). 2) Exogenous factors (These factors are culture, reference group, family, social status, etc). Organizational decision making unit

Organizational buying decisions are mostly like to be made by a committee of group of people that wholly by an individual. According to WEBSTER and WIND there are five units in organizational buying unit. * User: The individual most likely to be final user of the product. They are the one who initiate the buying process ,they are the need recognizer * Influencer

* Decider
* Approver
* Buyer
* Gate keeper
Case study – A car manufacturing unit.
The company is a 1000 worker company producing cars. They are high value added company. There departments are operations, marketing, finance, HR, technology, purchase departments. BUYING PROCESS IN CAR INDUSTRY

Demand analysis
Most demand in organization buying is derived demand so the company’s most purchase depends upon order procured by the organization. To fulfill the orders the company purchase raw material, semi-finished goods, components and services as input to the production of other goods and services

Demand from the operation department
As the marketing department brings new order and does the demand forecasting it process the information to the operation department. The operation department makes the design and process the buying requirement to the purchase department. STAGES OF BUSINESS BUYING PROCESS IN THE ORGANIZATION

1) Need recognition
The need is recognized for the product , as in...

Bibliography: Philip kotler and gray Armstrong, principals of marketing, eight edition. N.J: prentice – hall inc.
Consumer behavior and marketing action, henry assail, India edition.
Consumer behavior, Blackwell Miniard Engel, India edition. – Automotive Component Manufacturers Association of India.
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