Organizational Buying Model
Organizational Buying ModelMODELS OF ORGANIZATIONAL BUYING BEHAVIOR
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.
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, legal, and cultural factors. The environmental variables can change organizational buying plans....