a. Outline four differences between organizational buying behaviour and consumer buying behaviour b. List and explain three influencing factors in organizational buying behaviour.
Explanation
a.
Organizational buying behaviour involves purchases in large quantities while consumer buying behaviour involves purchases in smaller quantities Organizational buying behaviour involves high purchasing values in terms of money while consumers buying behaviour involves low purchasing values in terms of money Organizational buying behaviour requires proper documentation while consumers buying behaviour require informal or no form of documentation. Organizational buying behaviour is done in a logical manner while consumer buying behaviour is done in an ad-hoc manner Organizational buying behaviour involves the formation of a committee while consumer buying is an individual decision etc.
b.
Nature of Organization: The nature of the organization will influence how it buys. A bureaucratic organization will have to observe a strictly laid down procedure than a non-bureaucratic organisation Individual factor: the status, values, powers and the knowledge of the key persons in the organisation's buying positions will influence the buying decision of the organization. Attitude to Risk: organizations that are risk averse would demonstrate high level of carefulness in their buying decisions as against organizations that are not risk averse. Technology:The technological development of the organization will influence how it buys. Organisations that are less technologically advanced may decide to buy on the internet or electronically while organisations that are are less technologically advanced would use traditional forms of buying. Organizational Policy: these include the objective procedures lay down by the organisation in materials procurement which must be considered by the established purchase decision committee and purchase manager. Interpersonal Factors: These include both status and authority as individual factors and also empathy and persuasiveness of purchase committee members. These factors influence their choices in selection of suppliers in organization buying behaviour process. Competition: is an organizational factor that influences the buying decision of purchase committee in the sense that might likely choose their competitor's supplier's quotation among others because of his well known quality supply at low price at the right time,
