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WELCOME

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MODELS OF

ORGANISATIONAL BUYINGBEHAVIOUR

- Presented by

  Abhimanyu Singh

  44769

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Organizational fator! or ta!"#ori$nt$%o&'$ti($!

best product quality

dependable delivery

lowest price

)$r!onal fator! or non#ta!" o&'$ti($!

promotion

increments

 job security

personal treatment

favour

FACTORS INFLUENCING BUYINGDECISION

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!hen the suppliers" proposals are substantiallysimilar# organi$ational buyers can satisfyorgani$ational objectives with any supplier# and

therefore personal factors become more important

!hen suppliers" o%ers di%er signi&cantly# industrialbuyers pay more attention to organi$ational factorsin order to satisfy the organi$ational objectives

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 'he !ebster and !ind (odel

 'he Sheth (odel

TY)ES OF MODELS

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comprehensive model considers four sets of variables which a%ect the

buying)decision ma*ing process in a &rm+

• environmental

• organi$ational

• buying center

• individual

THE WEBSTER AND WINDMODEL

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En(iron*$ntal Varia&l$!

Organizational Varia&l$!

B+,ing C$ntr$ Varia&l$!

In%i(i%+al Varia&l$!

Organizational B+,ingD$i!ion!

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En(iron*$ntal

Varia&l$!

, Physical

, 'echnological

, -conomic, Political and legal

, .abour unions

, /ultural

, /ustomer demands

, /ompetitive practicesmoreover pressures

, Supplier information

OrganizationalVaria&l$!

, 0bjective1goals, 0rgani$ation structure, Purchasing policies

and procedures, -valuation and reward

systems, 2egree of

decentrali$ation inpurchasing

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B+,ing C$ntr$Varia&l$!

, Authority, Si$e

, 3ey inuencers

, 5nterpersonal

relationship, /ommunication

In%i(i%+al Varia&l$!

, Personal oals

, -ducation, -perience, 8alues, ob position

, .ifestyle, 5ncome

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Organizational B+,ing D$i!ion!

, /hoice of Suppliers

, 2elay decision and search for more information

, (a*e# or lease# or buy

, 2o not buy

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-nvironmental factors inuence the buyingdecisions of individual organi$ations

0rgani$ational variables inuence degree ofcentrali$ation or decentrali$ation in the

purchasing function :unctioning of buying center is inuenced by ;

organi$ational1environmental1individual variables 0utput of the group decision)ma*ing process of

the buying center includes solutions to the buyingproblems of the organi$ation and also thesatisfaction of personal goals of individualmembers of the buying centre

-EY )OINTS

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Str$ngt.!

• comprehensive

• generally applicable

• analytical

• identi&es many *ey variables# which could beconsidered while developing mar*etingstrategies by industrial mar*eters

W$a"n$!!

• wea* in eplaining the speci&c inuence of the*ey variables

STRENGTHS ANDWEA-NESS

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developed by Professor agdish < Sheth#=97>

highlights the decision)ma*ing by two ormore individuals jointly# and thepsychological aspects of the decision)ma*ing individuals in the industrial buyingbehaviour

includes three components and situationalfactors# which determine the choice of asupplier or a brand in the buying decisionma*ing process in an organi$ation

THE SHETH MODEL

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Co*/on$nt012

Co*/on$nt032

Co*/on$nt 042Sit+ationalFator!

Supplie

r orbrandchoice

2i%erencesamongindividualbuyers causedbyfactors+

,?ac*ground of   individuals,Active search

,Perceptual  distortion,Satisfactionwith pastpurchases

8ariables thatdetermineautonomous or jointbuying decision+

@A Product speci&c  factors# including,'ime Pressure,Perceived ris*,'ype of Purchase

@? /ompany

speci&c  factors# including, /ompany si$e, /ompanyorientation, 2egree of centrali$ation

(ethods usedfor conictresolution in

 joint)decisionma*ing process+

, Problem)solving

, Persuasion, ?argaining, Politic*ing

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Co*/on$nt 012

• 'he bac*ground of individuals depends upontheir education# role in the organi$ation# and lifestyle

•

 'he factor perceptual distortion means theetent to which each individual participantmodi&es information to ma*e it consistent withhis eisting beliefs and previous eperiences

• 5t is diBcult to measure perceptual distortion#although techniques such as factor analysis andperceptual mapping are available for thispurpose

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Co*/on$nt 042

• 'here are si variables# product and companyspeci&c# which determine whether the buying

decisions are autonomous or joint

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Co*/on$nt 032

• According to the Sheth (odel# larger the si$e ofthe organi$ation and higher the degree ofdecentrali$ation# more will be possibilities of

 joint)decision ma*ing• Problem)solving and persuasion methods are

used when there is an agreement about theorgani$ational objectives

• 5f there is no such agreement# bargaining ta*esplace

• /onict about the style of decision)ma*ing isresolved by politic*ing

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Sit+ation fator!

• 'hese can be varied li*e

• economic conditions

• labour disputes

• mergers

• acquisitions

Li*itation

•

 'he model does not eplain inuence of thesefactors on the buying process

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THAN- YOU