Factors of influence of the organisationalen purchase

behavior
Environmental factors: They are difficult to identify and measure. Environmental influences can be
physically, technologically, economically, political as well as cultural. Influences are exerted by different
institutions, like suppliers, competitors and customers. The environmental condition are v.a. relevantly
where landspreading co-operation take place.

Examples of environmental factors: Investment behavior, consumer behaviour, interest rate, technology,
legislation, competition, politics, ecology,"…

Organisationale factors: Cause that individuals differently with restraint as if it alone or in another

organization decisions meet. Organizational Buying Behaviour steered by goals of the organization, which
are determined again by financial means, technology as well as human resources.

Examples of Organisationale factors: Goals, purchase tactics, organisational structure, hierarchy

Social one, Interpersonale factors: Group decisions, like it also in the Buying center, pleases, by
different factors are affected. Factors of influence are the individual goals and character characteristics,
the kind of the guidance of a group, the group structure and external influences (environment,
organization).

Examples of social factors: Group dynamics, authority,"…

Individual factors of the persons involved: Individuals are coined/shaped by complex Kombinatioen

between personal and organisationalen goals. Both cultural, organisationale and social factors affect
individuals. Individual factors affect the decision-making process also due to ignorance, like e.g.: over
available alternatives, due to information gaps.

Organization buying is the decision-making process by which formal organizations establish the need for purchased
products and services and identify, evaluate, and choose among alternative brands and suppliers. (Webster and
Wind)
 
 
Some of the characteristics of organizational buyers are:
 
1. Consumer market is a huge market in millions of consumers where organizational buyers are limited in number
for most of the products.
2. The purchases are in large quantities.
3. Close relationships and service are required.
4. Demand is derived from the production and sales of buyers.
5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in demand for their
products.
6. The organizational buyers are trained professionals in purchasing.
7. Several persons in organization influence purchase.
8. Lot of buying occurs in direct dealing with manufacturers.
 
 
Organizational Buying Situations
 
Straight rebuy

In this buying situation, only purchasing department is involved. Thet get an information from inventory control
department or section to reorder the material or item and they seek quotations from vendors in an approved list.

The "in-suppliers" make efforts to maintain product and service quality. The "out-suppliers" have to make efforts
to get their name list in the approved vendors' list and for this purpose they have to offer something new or find
out any issues of dissatisfaction with current suppliers and promise to provide better service.

 
Modified rebuy

In this buying situation, there is a modification to the specifications of the product or specifications related to
delivery. Executives apart from the purchasing department are involved in the buying decisions. The company is
looking for additional suppliers or is ready to modify the approved vendors list based on the technical capabilities
and delivery capabilities.

 
New task buy

In this situation, the buyer is buying the product for the first time. As the cost of the product or consumption value
becomes higher, more number of executives are involved in the process. The stages of awareness, interest,
evaluation, trial, and adoption will be there for the products of each potential supplier. Only the products which
pass all the stages will be on the approved list and price competition will follow subsequently.

 
Systems buy

Systems buying is a process in which the organization gives a single order to a single organization for supplying a
full system. The buying organization knows that no single party is producing all the units in the system. But it wants
the system seller to engineer the system, procure the units from various vendors and assemble, fabricate or
construct the system.

 
 
Participants in the Business Buying Process
 
Users

The persons who use the item. Say for safety gloves the operators.

 
Initiators

The persons who request the purchase. The safety officer may initiate the request for the purchase.

 
Influencers

Persons who held define specifications. In this case of safety gloves, the safety officer may himself define
specifications. If an industrial engineer is in the organization, he may also be consulted. There can a different
gloves for different working situations and industrial engineer may be more aware of specific requirements due to
his special nature of work - human effort engineering.

 
Buyers

They are the person who actually do the buying transaction.

 
Gatekeepers

They control access to personnel in a company. The receptionist, the secretaries etc.

 
Deciders

People who decide on product requireements and suppliers. It is the final approval for product specfications and
suppliers' list.

 
Approvers
 Persons who approve the purchase. In the case of safety gloves, the personal manager may have the power to
approve.

 
 
 
Major Influencers on Business Buyers
 
Environmental factors

Expected demand for the product that the buying organization is selling, expected shortages for the item, expected
changes in technology related to the item etc. are the environmental factors that will have an effect.

 
Organizational factors

Changes in purchasing department organization like centralized purchasing, decentralized purchasing and changes
in purchasing practices like  long-term contracts, relationship purchasing, zero-based pricing, vendor-performance
evaluation are the organization factors of importance to marketers.

 
Interpersonal factors

These factors are the relationship between buyers and sales representatives of various competitor companies.

 
Individual factors

These factors related to the buyer. What sort of ways of interacting and service are appreciated by the buyers and
what ways are considered as irritants? Marketers have to understand the reactions of buyers.

1 Straight-Re-buy Situations: This situation is similar to repeat buying situations

of consumer/household buying. In this the buyer keeps on placing the order on

routine basis without changing any product specifications (stationery items,

chemicals, lubricants, abbrasives, paints are some examples). Some typical

characteristics of the routine buying situations are:

a) Routine purchasing procedures exist,

b) The buying alternatives are known, but a formal or informal list of `approved

'

suppliers is available.

c) A supplier, not on list, is not considered.

d) Decision on each separate transaction is made by the purchasing department.

e) Buyers have relevant buying experience and require little new information.

2 Modified Re-buy: In a modified re-buy situation, a buyer may change the

product specifications or may even change to a substitute product for economic and

performance considerations. Thus using aluminium instead of copper wires, nylon

bushes instead of brass and using hydraulic excavators instead of mechanical are

some examples. In this situation, some familiarity with either product or its

performance expectations does exist. Some characteristics of the modified re-buy

situations are:

a) A regular requirement for the type of product exists.

b) The buying alternatives are known, but sufficient change has occurred to require

some alteration to the normal supply procedure.

c) Change may be stimulated by external events, e.g. inputs from supplying

companies.

d) Change may be stimulated by internal events, e.g., new buying influences, value

analysis, reorganisation.

3 New Task : New Task' is a situation where the organisational customer buys the

product for the first time without having any previous experiences (personal
computers, plain paper copiers, fax machines, CNC machine tools are some products

for which little experience exist amongst a large number of the Indian organisation).

Some of the characteristics, for `new task' situations are:

a) Need for the product has not arisen previously.

b) Little or no past buying experience is available to assist in the purchasing

decision.

c) Members of the buying unit require a great deal of information.

d) Alternative ways of meeting the need are likely to be under review.

e) The situation occurs infrequently, but the decisions taken may set a pattern for

more routine purchases subsequently.

f) Opportunities exist at an early stage in the decision process for external

(marketing) inputs to have an influence on the final decision mad