Saturday, 5 October 2013

Organisational Buying Behaviour

Organizational 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.The difference in organisational buying and individual buying is that organisational buying involves multiple individuals in the decision making and is governed by rules and standards.

The buying centre involves all those individuals and groups who participate in the purchasing decision making process, who share some common goals and the risks arising from the decisions.It includes:-

1.INITIATOR - who request that something be purchased.
2.USERS- who use the product or service.
3.INFLUENCERS- influence the buying  decision, by helping define specifications and providing information for evaluating alternatives. The people who help into the making of the antiseptic liquid comes under the influencers.
4.DECIDERS- decide on product requirements or on suppliers
5.APPROVERS- who authorize the proposed action of deciders or buyers
6.BUYERS- who have formal authority to select the supplier and arrange the purchase terms. They may even help shape product specifications, but they paly their major role in selecting vendors and negotiating. They could include high level managers.
7.GATE KEEPERS- who have the power to prevent sellers or information from reaching members of the buying centre.


1.Problem Recognition
2.General Need Description and Product Specification
3.Supplier Search
4.Proposal Solicitation
5.Supplier Selection
6.Order- Routine Specification
7.Performance Review

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