Business admin and marketing:Organisational Buying Behaviour

Organisational buying behaviour shares some similarities with customer buying behaviour but there are also significant differences which we will focus on later on.

Within organisational buying behaviour there are four market groups namely:

• Industrial markets
• Reseller markets
• Government markets
• Institutional markets

Organisational markets v consumer markets

1. There are fewer transactions compared with consumer markets
2. Transactions are normally of greater volume and value
3. Buyers in organisational markets seek information in a more formal manner.
4. Purchasers in organisational settings tend to be less price sensitive.  Factors such as quality and reliability be take priority over price.
5. Decisions are often more complex than those faced by consumers
6. More than one person amy be involved in the buying process for example,  technical experts, financial advisers, board of directors etc.

There are three different situations involved in organisational buying behaviour.  These are:

• New taks purchase
• Modified re-buy
• Straight re-buy

The organisational buying process

1. Problem recognition
2. General need description
3. Product specification
4. Search for alternative products/suppliers
5. Seek offers
6. Evaluate offers relative to specifications
7. Order product
8. Evaluate product and supplier performance