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Business Buying Behavior And Buying Process

3104 words - 13 pages

Buyer behavior can be defined as the activities and decision processes that involves in choosing between alternatives, procuring and using products or services.The behavior of buyers is influenced by various factors, we can broadly categorize them in two categories of influence1. Endogenous factors (i.e. factors that are internal to the individual). These influencers are needs and motives, learning, attitudes, personality and self concept.2. Exogenous factors (i.e. factors that are external to the individual). These factors are Culture, reference groups, family, social status etc.So how these factors influence the buying behavior of individuals and organizations.Buying decision ProcessBuying ...view middle of the document...

Organizational Decision Making UnitsOrganizational buying decisions are most likely to be made by a committee or group of people than wholly by an individual. In an organization purchase 'decision making unit' there are various center of powers which influences and finally guides the decision making. According to Webster and Wind there are five units in an organizational buying unit -:1. Users - the individuals most likely to be the final user of the products. They are the one who initiate the buying process; in fact they are the need recognizers.2. Influencers - As most of the decision in an organization is made by committee or purchase department, some people acts as influencers in the group for example if for the atomization of office communication the company have to install the latest devices the user may place the need for voice recorders or some other device but the IT department will influence which one to buy as they have the responsibility to decide in broader view of overall organization technology policy. once the IT department gives the product specification and process, the Purchase department will evaluate the sellers.3. Decision Makers - the decision makers are the one who took the final decision of what should be purchased and from where it should be purchased.4. Approvers - once the decision makers took their decision it goes to the approving authority. For example if the purchase department finalized what is purchased and from whom it purchased, the order will go to finance department for approval.5. Buyers - As the finance department approves the decision the purchase department can go ahead and purchase the communication device.6. Gate-keepers - these members control the access to persons in DMU for example secretaries manage the work flow of purchase department head so how successful a company is at selling can sometimes depend how fast the secretary process your file for perusal.The above decision making units not necessarily have to be separate units' in fact they can very well overlap too. For example the IT department can be user and influencer while purchasing a information technology product.Case Study - A Garment Manufacturing Unit for a Retail ChainBackgroundThe company is a small 100 worker company manufacturing garments and clothing for retailers in the area. They are high value added clothing makers as the basic clothing is sourced from the factories in Far East. The company has six departments -1. Operations department - the operations department looks after the manufacturing of the garments. It maintains the production schedule, finishing and packaging of the goods. Under the operations department comes the design studio, which is responsible for the creation of innovative designs.2. Marketing department - the marketing department looks after the marketing of the garments, it focuses on meeting new retail stores and creating new avenues where the products could be sold.3. Finance department - the finance...

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