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A Presentation On-Organizational Buying Behavior and Howard Sheth Model
A Presentation On-Organizational Buying Behavior and Howard Sheth Model
• MODIFIED REBUY
Routine Purchase
Frequent Purchase, but buyer does review product
specifications or suppliers
NEW TASK
Not Routine
Product needs and specifications researched
BUYING CENTER
There are often multiple decision makers in
organizational purchases. For example
Users
Influencers
Deciders
Buyers
Gatekeepers
Risk and uncertainty
- This is concerned with the role of risk or uncertainty
on buying behavior. The level of risk depends upon
the characteristics of the buying situation faced. The
supplier can influence the degree of perceived
uncertainty by the buyer and cause certain desired
behavioral reactions by the use of information and the
implementation of certain actions. The risks perceived
by the customer can result from a combination of the
characteristics of various factors: the transaction
involved, the relationship with the supplier, and his
position vis-a-vis the supply market.
Factors influencing organizational buying
behavior.
Three key factors are shown to influence
organizational buying behavior these are,
Types of buying situations
Situational factors, geographical and
Cultural factors and time factors.
EXPLANATION OF THE MODEL
EXPECTATION
Expectation refer to perceived potential of alternative
suppliers and brands to satisfy a number of explicit and
implicit objectives in any particular buying decision.
EXPECTATIONS-
Purchasing Agents
Engineers
Users
Others
Background of individuals: The first and probably
most significant factor is the backgrounds and task
orientation of each individuals involved in the buying
process.
They can be classified under following head:
Specialized education
Role Orientation
Life Style
Information Sources and active search- Type of
information each of the decision maker is exposed to
and his participation in active search
Various sources of Information search
Salesman
Exhibitions and tradeshows
Direct mails
Press releases
Journal advertising
Perceptual distortion: Each individual strikes to make
the objective information consistent with his own prior
knowledge and expectations by systematically distorting
it, for example; since there is substantial difference in the
goals and values of purchasing agents, engineers and
production personnel, one should expect different
interpretations of the same information among them.
Satisfaction with past purchase: The factor which
creates differential expectation among the various
individuals involved in purchasing process is the
satisfaction with buying experiences with the supplier or
brand. Often it is not possible for a supplier or a brand to
provide equal satisfaction to the three parties.
Industrial buying process