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

Answer Details

a. Differences between organizational buying behavior and consumer buying behavior:

1. Purpose of Purchase: Organizational buying is for business purposes, while consumer buying is for personal or household use.
2. Decision Making Unit: Organizational buying often involves a group of people, with different roles and responsibilities, making the decision to buy. Consumer buying is usually made by an individual.
3. Evaluation Criteria: Organizational buying decisions take into account factors such as total cost, compatibility with existing equipment, and impact on the organization's goals. Consumer buying decisions are often based on personal preferences and emotions.
4. Purchasing Frequency: Organizational buying is often a less frequent process but involves larger quantities and higher value purchases. Consumer buying is more frequent but typically involves smaller purchases.

b. Influencing factors in organizational buying behavior:

1. Organizational culture: The values, beliefs, and attitudes of the organization play a role in the purchasing decisions made.
2. Organizational structure: The way the organization is structured, including its decision-making processes, can influence the buying behavior of the organization.
3. External environment: External factors such as market conditions, economic trends, and competitor activity can also have an impact on organizational buying behavior. These factors can influence the organization's goals and objectives, as well as the resources available for purchasing.