Theory question 106
Consumer Behaviour(a) Outline four differences between organizational buying behaviour and consumer buying behaviour.
(b) List and explain three influencing factors in organizational buying behaviour.
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(a) Any four: organisations buy to produce or resell, consumers for personal use; organisational buyers are few and large, consumers many and small; organisational buying is done by trained professionals/committees, consumer buying by individuals; organisational purchases are large in volume and value; organisational demand is derived and fairly inelastic; organisational buying follows formal procedures (tenders, contracts); buyer-seller relationships are closer and longer-term; consumer buying is more emotional/impulsive.
(b) Any three, explained: environmental factors (economy, technology, government policy, competition); organisational factors (objectives, policies, procedures, structure); interpersonal factors (authority, status, persuasiveness of members of the buying committee); individual factors (age, education, job position, personality of the buyers).
Give each point as a full sentence, with an example where possible.