characteristics of organizational buying
organizational buying behaviour is the decision-making process that organizations use to
establish the need for products and services, and identify, evaluate and choose among
alternative brands and suppliers. there are some important distinctions between
organizational and customer buying behaviour.
a. demand characteristics
derived demand means that the demand for industrial products and services is
driven by or derived from demand for consumer products and services.
b. size of the order or purchase
organizational buyers' purchases are normally larger than those made by the
ultimate consumer. purchasing procedures are more formalized for the
organizational buyer than for the ultimate consumer and determine who participates
in the purchase decision and the length of time required to arrive at a purchase
c. number of potential buyers
organizational buyers are usually fewer in number than the number of ultimate
D. organizational buying objectives.
organizations buy products and services to help them achieve and satisfy their organizational
a. for profit-making organizations, this objective is usually to increase