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MKT 2210 Lecture Notes - Demand Characteristics, Quality Management

Course Code
MKT 2210
Subbu Sivaramakrishnan

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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
consumer buyers.
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 profits
by reducing costs or increasing revenues.
b. for nonprofit firms and government agencies the objective is usually to meet
the needs of the publics they serve.
e. organizational buying criteria
organizational buying criteria are the objective attributes of the supplier's products
and services and the capabilities of the supplier itself. seven key buying criteria
1. price.
2. ability to meet the quality specifications required for
the item.
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