a. Outline four differences between organizational buying behaviour and consumer buying behaviour b. List and explain three influencing factors in organizat...

Answer Details

(a) Four differences between organizational buying behaviour and consumer buying behaviour

Other valid differences: organizational demand is derived from consumer demand while consumer demand is direct; organizational buying involves formal procedures, tenders and negotiation while consumer buying is informal.

(b) Three influencing factors in organizational buying behaviour (explained)

1. Environmental factors: External conditions such as the level of demand, economic outlook, interest rates, technological change and government regulations affect how and when organizations buy.
2. Organizational factors: The firm's own objectives, policies, procedures, purchasing structure and available budget shape its buying decisions.
3. Interpersonal and individual factors: The interests, authority, status and relationships of the people in the buying centre, as well as the personal characteristics (age, education, attitude to risk) of the buyer, influence the choice made.