Organizational Buying Behaviour

• Primarily, organizational buyers are customers, not consumers. There are few factors which influence organizational buyers which are divided into external and internal stimuli. They are:

o Environmental Factors (economic trends, supply conditions, technological changes, political stability, social/cultural issues)

o Organizational Factors (business objectives, purchasing policies, resources, size of DMU, organizational structure)

o Group Factors (Influenced by how well they get on, interpersonal skills, differences

of opinions, different needs, office politics)

o Individual Factors (individual members have different personalities,

different cognitive styles, (innovators/adaptors), individual goals)

• A prediction market is an outgrowth of the wisdom of crowd’s phenomenon. In this sector, decisions are made by groups rather than individuals. People that specialize in this area, are called “traders”(yep, they predict or more like make assumptions of future microeconomic fluctuations). Also there another thing called crowd sourcing. It is thought that it is cost efficient to call people that are not connected to the company to help see the problems (which to me seems like beta testing).

• One big difference between the org. customer and regular consumer is that an impulse to buy is very rare as a org. buyer doesn´t “charge” towards a product, usually, it´s a completely thought-out decision. Also, decisions often are too risky to act without proper calculations (affects buyers career). As well, there is an interesting factor in the business market when suppliers can affect consumers demand in the market (Intel example).

Another characteristic of the business market is rational decision