Premium Essay

Organizational Buying Model

In:

Submitted By imransyed
Words 889
Pages 4
MODELS OF ORGANIZATIONAL BUYING BEHAVIOR

INTRODUCTION
Organizational buying is a complex process of decision making and communication, which takes place over time, involving several organizational members and relationship with other firms and institutions. It is much more than a simple act of placing an order with the suppliers. In this sense, organizational buying behavior is the decision making process by which formal organizations establishes the need for purchased products and services and identifies, evaluate and choose among alternative brands and suppliers.
Industrial or Business buyers are influenced by many factors when they make buying decisions. Generally, business buyers are influenced by organizational factors or task oriented objectives (like best product quality, or dependable delivery, or lowest price) and personal factors or non-task objectives (like promotion, increments, job security, personal treatment or favor). When the suppliers’ proposals are substantially similar, organizational buyers can satisfy organizational objectives with any supplier, and hence personal factors become more important. When suppliers’ offer differ substantially, industrial buyers pay more attention to organizational factors in order to satisfy the organizational objectives.
There are two models available to provide a comprehensive and integrated picture of the major factors that combine to the organizational behavior. These are (i)The Webster and wind model and (ii) The Sheth model.

ABSTRACT
The Webster and Wind Model of Organizational Buying Behavior
A comprehensive model of the organizational buying behavior is developed by Webster and Wind. This model considers four sets of variables- environment, organizational, buying centre(or group forces), and individual.

Environmental variables: These variables include physical, technological, economic, political,

Similar Documents

Premium Essay

Marketing

...Holiday decision-making: an adaptable and opportunistic ongoing process Name: Institution: Course: Tutor: Date: Identify and discuss how holiday decision-making as described in the case, is different from the traditional problem-solving models of consumer decision-making Holiday decision-making process is different from the traditional problem-solving models of consumer decision making. This is because holiday decision-making model does not require fixed sequential stages that are required by traditional problem-solving models. Administrative factors play an imperative role when deciding time and choice of holiday decision-making process (Schermerhorn & Osborn, 2011). The typical factors that mostly influence the holiday decision-making process are levels of involvement, situational factors, anticipation, nostalgia and daydreaming. On the other hand, this is very different from traditional decision-making process that is well sequentialized and structured. In this model, the need for a specific service or product is identified and information search and other alternatives are evaluated. The consumer is further led towards purchasing a product and there after placing a purchase evaluation (Moore & Simmons, 2010). In the traditional consumer decision-making, the method of searching for information is well structured and it is either external, internal or both of them. Information collection process in the holiday decision making is an ongoing and...

Words: 2340 - Pages: 10

Premium Essay

Consumer Prefernce Towards Tupperware Products

...Consumer Behavior |Program |: |MBA |Class of |: |2009 | |Credit |: |3 |Sessions |: |33 | |Course Code |: |SL MM 602 | | | | Objective To understand the various factors influencing behavior of consumers – as individuals and as members of a group/society, and also the impact of consumerism in the contemporary environment. To understand the behavior of consumers – decision making, post-purchase behavior, behavior in a shopping environment, etc. To understand the behavior of organizations as consumers. |REFERENCE BOOKS |AUTHOR / PUBLICATION | |Consumer Behavior |ICMR | |Consumer Behavior, 5e |Leon G Schiffman and Leslie Lazar Kanuk, Prentice-Hall, India | |Consumer Behavior |Hawkins, Best & Coney, McGraw Hill | |Consumer Behavior |Blackwell, Miniard & Engel, Thomson ...

Words: 975 - Pages: 4

Premium Essay

Organizational Structure

...Organizational Structure MGT230 Organizational Structure Daimler Truck is considered the world’s biggest top quality truck producer all over the world. The huge stretch of the Daimler truck company includes nearly every country across the world. Daimler distributes a total of more than 100 individual vehicle designs in the product groups’ cars, vans, trucks as well as buses in about 200 countries throughout the world. The models represented by Daimler incorporate Mercedes Benz, Mitsubishi Fuso, Western Star, Orion bus, Thomas Built Bus, Detroit Diesel, as well as Freightliner. Daimler Trucks North America (DTNA) is actually an associate the Daimler group and works as a different organization from Daimler AG. This is chiefly because of the wish to detach the automotive category from the truck category and let each company to work separate from each other. The history of DTNA with Daimler goes as far back as 1981, when Freightliner Corporation was purchased by Daimler-Benz of Stuttgart, Germany. Access to the technical and fiscal power of Daimler-Benz assisted propel Freightliner to leadership of the United States heavy-duty sector. Daimler Trucks North America stays attached to the achievement of Daimler's international commercial vehicle strategy. Daimler Trucks North America models support the crucial NAFTA truck industry, one of the biggest truck markets all over the world, and are sold in more than 35 nations across the world. Daimler Trucks North America...

Words: 1126 - Pages: 5

Premium Essay

Mgt/230 Organizational Structure Essay

...Organizational Structure James Singletary MGT/230 September 16, 2013 Robert Bloomfield Daimler Truck is considered the world’s biggest top quality truck producer all over the world. The huge stretch of the Daimler truck company includes nearly every country across the world. Daimler distributes a total of more than 100 individual vehicle designs in the product groups’ cars, vans, trucks as well as buses in about 200 countries throughout the world. The models represented by Daimler incorporate Mercedes Benz, Mitsubishi Fuso, Western Star, Orion bus, Thomas Built Bus, Detroit Diesel, as well as Freightliner. Daimler Trucks North America (DTNA) is an associate the Daimler group and works as a different organization from Daimler AG. This is chiefly because of the wish to detach the automotive category from the truck category and let each company to work separate from each other. The history of DTNA with Daimler goes as far back as 1981, when Freightliner Corporation was purchased by Daimler-Benz of Stuttgart, Germany. Accesses to the technical and fiscal power of Daimler-Benz assisted propel Freightliner to leadership of the United States heavy-duty sector. Daimler Trucks North America stays attached to the achievement of Daimler's international commercial vehicle strategy. Daimler Trucks North America models support the crucial North America Free Trade Agreement (NAFTA) truck industry, one...

Words: 1155 - Pages: 5

Premium Essay

Engieer

...2 The Individual and Organizational Purchase Abstract Downstream of the sector, passengers buy air tickets for private or business use. Upstream, companies buy planes, equipment and services. Further upstream, plane or satellite manufacturers-integrators also buy components from their suppliers. Understanding the needs and the processes of upstream or downstream buying is the basis of marketing. This means analyzing the individual psychological, sociocultural and psychosocial factors which enter into the buying decision. The purchase context influences the buyer’s behavior. An analysis of buying behavior is also essential in Business to Business, where the purchase is not made for an individual but for a company, involving a variable number of people. To be more commercially efficient, the supplier must take into account the special nature of the industrial purchase, in particular the specific nature of the buying center, the buying process and buying situations. First we will look at the individual purchase and then the Business to Business purchase. 2.1 The Individual Purchase 2.1.1 Factors Influencing Buying Behavior Most models present factors influencing buying behavior in a hierarchical and simplified way. In fact, this classification in terms of importance of the factors depends for the most part on the context.1 For example in Muslim countries the power of religion is very important and almost certainly dominates other factors such as...

Words: 19135 - Pages: 77

Free Essay

Determinants of Cart Abandonment

...be explained by scholars. Here, we identify key drivers to online cart abandonment and suggest cognitive and behavioral reasons for this non-buyer behavior. We show that the factors influencing consumer online search, consideration, and evaluation play a larger role in cart abandonment than factors at the purchase decision stage. In particular, many customers use online carts for entertainment or as a shopping research and organizational tool, which may induce them to buy at a later session or via another channel. Our framework extends theories of online buyer and non-buyer behavior while revealing new inhibitors to buying in the Internet era. The findings offer scholars a broad explanation of consumer motivations for cart aban- donment. For retailers, the authors provide suggestions to improve purchase conversion rates and multi-channel management. Keywords Online shopping cart abandonment . Online buyer behavior theory. E-tail .E-commerce To more fully understand buyer behavior, it is crucial to also examine consumer “non-buying” behavior. Non- buying behavior is especially apparent in an online retailing context, where many shoppers place items in their virtual shopping carts yet do not complete the purchase—thereby abandoning their cart. Known as virtual or online shopping cart abandonment, we define this behavior as consumers’ placement of item(s) in their online shopping cart without making a purchase of any item(s) during that online shopping session. Industry studies...

Words: 3821 - Pages: 16

Premium Essay

Segmenting Business Markets

...business that process natural resources locate themselves close to the source in order to minimize shipping costs. 2. Customer Type This sub-divided into four different categories: - a) Size b) Industry c) Organizational Structure d) Purchase Criteria a) Size: Business customer size can be estimated using factors such as sales volume, number of employees, number of production facilities and number of sales offices. Most sellers divide their potential market into large and small accounts, using separate distribution channels to reach each segment. The sellers force may contact large volume accounts directly, but to reach the smaller accounts, the sellers may use a middleman or rely on the internet or telemarketing. b) Industry: Firms that sell their products to other business may want to segment its market on the basis of industry. However, if a firm like the afore-mentioned one were to segment its potential customers by type of customer and then specializing in order to meet the needs of organizations then they would be performing better. c) Organizational Structure: Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions. The organizational structure of an organization tells you the character of an organization and the values it believes in. Therefore, when you do business with...

Words: 663 - Pages: 3

Premium Essay

Business Strategy Paper

...Running head: MARKETING & CUSTOMER RELATIONSHIP CONCEPT WORKSHEET Marketing & Customer Relationship Concept Worksheet University of Phoenix Dr. Ron Morritt MBA 570 May 24, 2008 |A: Concept |B: Application of Concept in Scenario |C: Citation of Concept in|D: Personal Experience in your| | | |Reading |Organization | |Key external trends such as |The customer research TeraTech |“The social forces of the |Every year Curves solicits | |Social Forces through the study |commissioned revealed distinct demographic|environment include the |feedback through focus groups, | |of Demographics |differences between customers who approve |demographic |surveys and face-to-face | | |of TeraTech’s services and those who do |characteristics of the |interviews in order to find out| | |not. By using the information it has |population and its values.|what population of women are | | |acquired, the company can focus corrective|Changes in these forces |interested in Curves but have | | |action, future product development, and |can have a dramatic impact|not yet joined. The corporate | | |marketing...

Words: 1303 - Pages: 6

Premium Essay

Case on Marketin

...strategy. In the years following, Kodak reduced its dependence on traditional photography. The new direction for the company would focus on non-photographic markets, digital markets (such as inkjet printers and high-end digital printing), and medical imaging. The company would no longer invest in traditional consumer film, which, along with photography, accounted for 70 percent of Kodak¶s revenue and all its profits. By 2004, the company had been significantly restructured in a manner reflective of the new strategic directions. By 2006, it appeared that the new strategic plan was not working, as evidenced by heavy losses and a declining stock price. Discussion Questions 1. How are the market structure and demand, the nature of the buying unit, and the typesof decisions and decision processes in the proposed commercial and health care markets as compared with Kodak¶s traditional consumer market? In the traditional consumer film market,Kodak had to have its film everywhere. Although it could deal with large chains like Walgreen or Wal-Mart, it had to have its film available...

Words: 1587 - Pages: 7

Premium Essay

Theoretical Change Models

...A: Matrix of Theoretical Models |Theoretical Model |Description of Theoretical Model |Type of health care change situation where model best applies | |Kotter’s 8-Step Change |The Kotter 8-Step Change model is considered a people-driven approach that helps people to |Kotter’s 8-Step Change Model applies best in implementing a change that is | |Model |see the reason for change. The theory behind this model is that people change when they are |driven by emotion. In healthcare, improving patient satisfaction is an ideal | | |shown the truth because this influences their feelings. Emotion is at the heart of change. |objective for using Kotter’s Model. An example of using a change model for | | |Kotter’s successful change leaders find a problem or a solution to a problem and then show |improving patient satisfaction through decreasing wait times was implemented | | |people using engaging and compelling situations to change behavior. Each of the 8 |at Family Medicine Clinic’s Pharmacy in Abu Dhabi. While, the objective of | | |steps/actions is implemented to drive a new behavior. For example, the first step in the |the project was to improve patient satisfaction through improving patient | | |model is to Create a Sense of Urgency...

Words: 1492 - Pages: 6

Premium Essay

My Paper

... 25 marks Semester End Examination -- 50 marks Objectives: This cour se is designed to help students to develop basic appreciation of quality concepts and learn the tools and techniques to achieve quality. It also gives the totally integrated effort for gaining competitive advantage by continuously improving every facet of an organization’s activities. Pedagogy : Lectures, Assignments, case studies, seminar, MODULE 1 Introduction to TQM: Various definitions of quality and TQM, Core concepts of quality, The masters of quality(W Edwards Deming, Joseph M Juran, Philiph B Crosby, Kaoru Ishikawa, Ginichi Taguchi, Shigeo shingo) Evolution of quality, The Total Quality Management Excellence Model, Strategic Quality Management, Lecture, Numerical Exercises on cost of quality, TPM 1. Basterfield H Dale and others, Total Quality Management, Pearson Education/PHI, Inc. 2006. 2. K.Shridhar Bhat Total Quality Management (Himalaya publishing house 2005). 3. Poornima M Charantimath, Total Quality Management, Pearson Education, 2003. MODULE 2 Continuous process improvement: Concepts of Kaizen, Kaizen vs. Innovation, Kaizen Strategy, House of Quality, Quality Function deployment, Quality Circles. Brain storming, Value analysis, Poka Yoke, Bench marking. Lecture, Case study on Kaizen 1. Imai Masaki, Kaizen, The key to Japan’s Competitive Success, McGraw-Hill, Inc., International Edition, 1991. 2. ...

Words: 5392 - Pages: 22

Premium Essay

Logistics Organizational Structures

...there is no single ideal or optimal logistics organizational structure”. But specifically the study attempt to identify types of logistics organization structures, to examine factors for organizations to adapt different logistics organization structures, to explore components of optimal logistics organization structure, and to identify new and dynamic business model for supply chains of the future. Case study design was used since it allows the use of various data collection methods, cheaper and less time consuming. Thus provides more time to pass through secondary sources so as to reach the validity and reliability coverage of the study. The study finds that there are five types of organizational structures deployed in the logistics functions, which are Non SCM-oriented Organization, Functional Organization, Matrix Channel Organization, Process staff Organization, and Integrated line Organization. The study also identifies that most typical logistics organizational structure consists of shareholders, board of directors, the sales supervisor, logistics manager, customs supervisor, merchandiser supervisor, materials manager, purchasing manager, trading manager, merchandiser manager, warehouse manager, distribution manager, customs specialist, documentation specialist, shipping specialist, courier, warehouse stock management and employees. Also the study finds different components of optimal logistics organization which are organizational characteristics, environment characteristics...

Words: 325 - Pages: 2

Premium Essay

Bus 560 Exam 1

...described as a  A. drifting organization. B. functional organization. C. horizontal organization. D. cooperative organization.   2. The core things that an organization does well are known as its  A. distinctive values. B. distinctive competencies. C. distinctive ideals. D. distinctive technologies.   3. Which of the following statements about a mission statement is true?  A. Even though no one denies the importance of the mission statement, it is the least used of all of the management tools. B. An effective mission statement takes an internal organizational focus. C. It should be focused on the physical product or service that the organization is offering at present. D. It should be focused on the broad class of needs that the organization is seeking to satisfy.   4. When an organization has formulated its mission and developed its objectives, the next managerial task is to develop  A. job descriptions. B. organizational strategies. C. mission and vision statements. D. cross-functional teams.   5. Huggies first started out in the disposable diaper industry. It then developed ‘Pull-Ups', disposable training pants for kids...

Words: 2638 - Pages: 11

Premium Essay

Consumer Topic

...different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO’s in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on “impact of advertising in B2B marketing” 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers’ brands 26. Study of operations & marketing of chemical goods in SSI 27. The impact of tax on electronic goods & products (industrial marketing) 28. Merchandising key account management in apparel exports 29. Effect of marketing in mobilization in BPO segment 30. Marketing in FMCG sector 31. E-marketing of financial services:...

Words: 3792 - Pages: 16

Premium Essay

Titles for Preparation of Project Titles

...different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO's in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on "impact of advertising in B2B marketing" 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers' brands 26. Study of operations & marketing of chemical goods in SSI 27. The impact of tax on electronic goods...

Words: 3790 - Pages: 16