Saturday, 28 September 2013

Organisational Buying Behaviour

According to the definition given in Marketing Management by Philip Kotler- " Organisational buying is the decision making process by which formal organisations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers".

Organisational buying behaviour deals with the purchasing decisions made by a business or other type of organisational entity. While sharing some characteristics with the buying behaviours of consumers, the purchasing habits of an organisation are often influenced by a number of factors that are associated with the culture of the entity as well as the nature of the industry in which the organisation functions.





FORCES AFFECTING ORGANISATIONAL BUYING BEHAVIOUR

The organisational buying behaviour is influenced by a wide array of forces both inside and outside the organisation. These forces include environmental, organisational, group and individual forces:

1. Environmental Forces -Everything is influenced by its environment and so is organisational behaviour. Organisational buying behaviour is affected by changing business conditions, new invention of technology and creation of new law.

2.Organisational Forces- Individual decision maker can be influenced in different ways. Every organisation has a set of different personalities and thus all the employees should be conscious about the culture of the organisation.

3. Group Forces- The organisational buying behaviour consists of a complex set of smaller decisions influenced by several individuals.

4. Individual Forces- Individual makes buying rather than organisation. Each individual involved in the buying decision have different organisational functions and perceptions for achieving personal and organisational behaviour.

The retailers or the franchisees or the mom-and-pop stores are the organisations that buy Maggi in bulk in order to sell in their shop. Bulk buying helps in getting the buyer better and cheap prices for that product.









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