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Models of Individual and Organizational Buyer Behavior

Student Name (Anonymous for Written Assignments)

BUS 5112: Marketing Management

Dr. Michel Engwanda

Date 20 April 2021

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Models of Individual and Organizational Buyer Behavior

Individuals and organizations need to purchase offerings to in order to meet their specific

needs. However, there is are distinct, in the procurement process of an organization vis-à-vis an

individual purchasing similar offerings.

The product in this writing assignment will be the case of procurement of broadband

internet connection for home use. Based on the readings and research, we will create a model of

buyer behavior. We shall then create and compare a buyer behavior model for the same offering

when it is procured by an organization..

C2B buyer behavior (Individual consumer)

In studying consumer behavior, researchers have identified several drivers that influence

the purchase decisions of consumers/customers. These factors can broadly categorize as

(Principles of marketing, 2015):

a. Situational Factors: Social Situation, Time, Reason for the Purchase, and mood.

b. Personal Factors: Personality and Self-Concept, Gender, Age, and Stage of Life and

Lifestyle, income, education, and marital status.

c. Psychological Factors: Motivation, Perception, Learning and Attitude

d. Societal Factors: Culture, Subcultures, Social Class, Reference Groups and Opinion

Leaders, Family

On this backdrop, individual buyers go through a number of steps to purchase offerings

in the market-place. The typical model of buyer behavior involves five stages. This process
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generally describes how the consumer identifies the best offerings, the best value for money and

locates the offering as illustrated in figure 01 below (Principles of marketing, 2015):

1. Need recognition

The Consumer identifies the need for broad band internet connectivity at his home in

order to facilitate the need for work related activities, e.g. online research, video conferencing,

email communications. The consumer also needs the broadband connection for home

entertainment i.e. streaming of HD media (video and Music).

2. Information search

The consumer then researches the market in search of the right offering. As they attempt

to zero-in on the right offerings. They will consult, mass media advertisement, word of mouth

and referrals, conduct online research and obtain third-party reviews.

Typical parameters that the consumer will be interested in include: the broad band speeds

available in the coverage area (will it meet all their needs) the reliability of the service

connection, dependability of the customer care system, after-sales services, etc. The cost of

installation, the cost of hardware (leasing, offered by the service provider).

3. Evaluation of alternatives

Armed with the gathered information the consumer will then compare and contrast the

merits and demerits of the various options from various service providers. The objective is to

acquire the best internet connectivity at the most competitive cost i.e. does the value outweigh

the cost?
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4. Purchase decision

The consumer then makes the purchase decision, and could start with a trial period and

confirm the purchase afterwards.

5. Post-purchase evaluation.

In closing the loop the consumer will assess the product to determine how it meets the

intended needs/expectations.

1. Need 2. Information 3. Evaluation of 4. Purchase 5. Post-

recognition search alternatives decision purchase
evaluation

Figure 1: Individual Customer buyer model

B2B buyer behavior (organizational buyer)

For a similar offering the organizational model will be as follows for follow the following

typical pprocess:

1. A need is recognized.

The organization in this case also need to connect their for their facility to be data ready

and for work related purposes. They have decided that they require an intranet and an internet

connectivity.

2. The need is described and quantified.

With consultation from the IT department, the management engages the functional

department heads in order to scope the connectivity needs in terms of features, speeds and
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bandwidth volume. Due to the high volume of data required to meet the workload of the

employees in various departments: they have opted to digital fiber connections for both the

intranet and internet connections complete with an enterprise serve that will control access and

protect the organizations filing system from authorized external and internal access. The IT

department then drafts the service and product specifications for the various connectivity

components.

3. Potential suppliers are searched for.

The It department then engages with the procurement teams in the organization to scope

the availability of vendor that may have the potential to supply the required offerings as per the

required specifications. The procurement department at this stage will consult the internal

process and determine the mode of acquiring the required services and products. Possible route

could be single sourcing, competitive processes like open or restricted bids, invoking existing

service agreements etc. generally the stage seeks to identify vendors which offer what they need,

those with a reputation for good quality, good partnership, and good value for money.

4. Qualified suppliers are asked to complete responses to requests for proposal (RFPs).

This stage seeks to solicit expressions of interest from vendors to supply the required

offerings. Incase of a two-stage selection process, the potential vendor will submit their bid

proposals in response to an request for from the organization. The proposals are expected to

respond adequately to the organizational product/service technical specifications. I this case this

may include, band with, hardware offerings, after sales service, technology and innovation, value

for money etc. typically the vendor may be requested to include their financial proposal that will

clearly indicate their offer for providing the required internet and intranet connection. It note
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worthy to mention that for an open, transparent and fair evaluation to be conducted own stream,

the evaluation criteria should be clearly presented in the RfP at this stage. Usually the

submissions date and time is fixed for all the participants in the bid process.

5. The proposals are evaluated and supplier(s) selected.

The proposals may be opened in public with attendance of representatives form the

participating vendors or it could be a closed bid opening. The bids

will be evaluated against the established evaluation criteria, a

popular rationale in this proceed is the quality and price -based

selection model. The organization basically screens the offers and

makes a selection. It is also in this stage that the vendor will a

minimum of final vendor for negotiation of terms that are

beneficial to the organization. At its conclusion, the selected

vendor and the other vendors that participated in the process will

be informed of the section decision.

6. An order routine is established.

Based on the internal procurement processes, the

organization will make orders to the selected vendor for purchase

of the installation and connecting their facility. According to the

technical specifications, time cost and other terms of agreement

usually stipulated in a supply and install contract.

Figure 2: Organizational buyer model
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7. A post-purchase evaluation is conducted and the feedback provided to the vendor.

Once the services have been established, the organization will provided performance

feedback to the vendor with the objective to realize or improve the quality of service. Typically

this process is conducted during the defects warrantee period. The process can be complex or

straight forward. It can be invoked by either party in the supply Contract

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References

Learning. (n.d.). Principles of Marketing. Principles of Marketing | Simple Book Production.

https://courses.lumenlearning.com/clinton-marketing/.

Principles of marketing. (2015). University of Minnesota Libraries Publishing.

https://doi.org/10.24926/8668.1901 (Original work published 2010)