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Organizational Buying behaviourPresented By:- Ruchika WardhanSuruchi AgarwalMobashir AhmadSushant SauravCH 2Organizational Buying Process1. Problem Recognition2. General Description of Need3. ProductSpecifications4. Supplier Search5. Acquisitionand Analysisof Proposals6. Supplier Selection7. SelectionofOrder Routine8. PerformanceReviewThree Buying Situations (slide 1 of 4)New taskModified rebuyStraight rebuyThree Buying Situations1. New Task New taskthe problem or need is totally different from previous experiences.Significant amount of information is required.Buyers operate in the extensive problem solving stage.Buyers lack well defined criteria.Lack strong predispositions toward a solution.4Buying Decision ApproachesJudgmental New task:Greater level of uncertainty ; buying activity includes,moderate amount of information search andmoderate tools in evaluating key aspects of buying decision

Strategic New-task decision: Extreme importance to the firmLong range planning drives the decision process

Three Buying Situations2. Straight rebuy

Straight rebuythe problem or need is a recurring or continuing situation.Buyers have experience in the area in question.Require little or no new information.Buyers operate in the routine problem solving stage.Buying Decision ApproachesCausal purchasesinvolve no information search or analysis.Routine low prioritydecisions are more important and involve a moderate amount of analysis.Three Buying Situations3. Modified Rebuy

Modified rebuydecision makers feel there are benefits to be derived by reevaluating alternatives.Most likely to occur when displeased with the performance of current supplier.Buyers operate in the limited problem solving stage.Buyers have well defined criteria.Buying Decision ApproachesSimple modified Rebuy: involves aNarrow set of choice alternativesModerate amount of information serach and analysis

Complex modified Rebuy: involves aLarge set of choice alternatives and pose little uncertaintyHigh amount of information serach and analysisSuited to a competitive Biding Process

Forces Influencing Organizational Buying BehaviorEnvironmentalForcesOrganizationalForcesGroupForcesIndividualForcesOrganizationalBuyingBehaviorEconomic Outlook: Domestic & GlobalPace of Technological ChangeGlobal Trade RelationsGoals, Objectives, and StrategiesOrganizational Position of PurchasingRoles, relative influence, and patterns of interaction of buyingdecision participantsJob function, pastexperience, and buyingmotives of individualdecision participantsA projected change in business conditions can drastically alter buying plan.