What is the differences between the buying behavior of an individual and an organization?
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Consumers buy many goods to use to satisfy personal or family needs. Organizational buyers buy limited goods to use to conduct business. Consumer buying behavior is effected by age, occupation, income level, education, gender etc. ... Correspondingly, what are the differences between organizational buyers and consumers? Show
Explanation: FOLLOW ME TO MORE ANSWERS HOPE IT'S CLEAR☺️ HOPE IT'S HELP☺️ In this essay, we will be talking about the difference between consumer buyer behavior and organizational buyer behavior and how marketers can harvest this knowledge to create the right marketing strategies for each category of the market. The main difference between consumer buyer behavior and organizational buyer behavior is that consumer buying consists of activates involved in buying and using of products for personal and household use, where organizational buyers purchase primarily for organizational purpose. Consumer behavior is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the competitors. Marketers will also need to know whether their controllable variables, e. g. marketing mix variables, will affect buying behavior. Culture is the broadest environmental factor which influences buyer behaviour, consumption choices cannot be understood without considering the culture. It is the prisms with which customers perceive the product. The culture of consumers determines the priorities he attaches to different products. The link between consumer behavior and culture is a two-way street. In one direction the products that are produced to fit a consumer’s culture are better accepted, in the other direction products and innovation that are created in a specific culture on a given time show us a clear domination in the culture's ideals. (Michael Solomon, Culture, 2006) Social class refers to the grouping together of individuals or families who have certain common social or economic characteristics. Societies can be divided in haves and have-nots. Order custom essay Difference Between Consumer Buyer and Organisational Buyer Behaviour. (2017, Jan 06). Retrieved from https://phdessay.com/the-difference-between-consumer-buyer-behaviour-and-organisational-buyer-behaviour/ A consumer is defined as the ultimate user of a product/commodity or a service, while an organization is a social set up, separated by physical boundary with defined objectives. Our experts can deliver a customized essay 308 qualified specialists online Learn more A consumer can influence an organizations buying behavior at the same time an organization can also be able to influence a consumers buying behavior. This means that the two parties depend on each other. When for example consumers change their purchasing pattern owing to an introduction of a given statute, companies may also change to reflect the same. On the other hand a company changes its pricing strategies consumers will be able to change immediately. (Foxall, 1993) Organizations buying behavior vs. consumer’s buying behaviorIn most cases organizations will buy products for resale while consumers buy for consumption purposes. Companies buy products for resale in order to make profits. (Foxall, 1993) An organization may buy a product to aid in the production of other goods and services while an individual may purchase goods for household use only. (Foxall, 1993) The decision to buy or not in a company is charged within a specific single unit while for a consumer it may be influenced by family preferences. (Personal selling: consumer buying behavior, 2008) In an organizational buying there is greater use of marketing in formation while a consumer does need to do marketing in order to make a purchase. Consumers buying process is less vigorous as opposed to an organization’s where it may involve four stages Webster’s (1965)model i.e. problem solving, buying responsibility , the search process and the choice process(Personal selling: consumer buying behavior, 2008) On-Time Delivery! Get your 100% customized paper Let`s start In an organizations buying process there are different roles played in the buying centers, these roles include: those who first recognize the product, individuals who affect the buying decision, those who are the authority of buying, and finally those who actually buy the product. (Personal selling: consumer buying behavior, 2008) Organizations buy as rational groups while consumers buy as willful individuals. Future expectation of changes in priceWhen consumers expect that the price of a commodity will rise against their favor they tend to buy more to avoid being victims of future price changes. Similarly organization will buy more of a product when there is a speculation that the price will change. E.g. a company will buy a large quantity of materials in order to take advantage of unprecedented changes in price; this could be to make abnormal profits or to ensure steady supply of products to the market thereby retaining their clients. (Kerimcan, 2004) Future expectation of changes in supplyWhen there is a perception that quantity of a commodity supplied in the market will fall consumers will buy more. At the same time organizations will react almost the same way. (Kerimcan, 2004) Quality sensitiveConsumers always would want to buy high quality products. They are ever cautious about the nature, quality and quantity of the product they buy. Likewise organizations are also quality sensitive. They will purchase high quality materials that are likely not to give them unfavorable variances. This will ensure that they maintain their client loyalty and satisfaction. (Kerimcan, 2004) Different factors influencing the buying behaviors of organization as well as consumers There are three main factors that influence the buying behavior of a consumer We’ll deliver a custom paper tailored to your requirements. Cut 15% off your first order Use discount ExternalGroup, this may include culture, family and preferences. A group of people from a particular cultural background will exhibit a different buying behavior when exposed to a different situation. Likewise a situation in which a company operates will influence its buying behavior i.e. it’s recognized as an influence both to the process as well as to the buying centre. (Johnston & Lewin, 1996) EnvironmentIn an organization the decision to buy does not only involve individuals but also joint groups. In consumer purchasing it may be influenced by a family. Interpersonal and inter-organizationalThe relationships between the buying and selling organizations, price and distribution capacity, and competitors market strategies; market positioning and industries marketing variables are a real threat in buying behavior. (Johnston & Lewin, 1996) In consumer buying interpersonal behavior is a key factor. Different lifestyles exhibited by different personalities, decision making ability and the level of motivation will immensely affect the buying behavior. (Kerimcan, 2004) ConclusionIt is important that marketing organizations understand the different kinds of behaviors exhibited by both organizations and consumers especially when making purchasing decision. This can be a critical success factor to a firm. An organization that clearly distinguishes the difference between the two will make further steps in market research. A market research is considered to be one the best strategies in ensuring that a firm achieves its competitive sustainability. (Personal selling: consumer buying behavior, 2008) Organizations themselves should also understand their own buying behavior. This will aid in making strategic planning decisions; managers need to give priority to their policies and organizational culture. Corporate organizations need to be a ware that the buying process can be bigger than the purchasing and procurement department and therefore should be ready to fully participate in the buying process as a whole. List of referencesFoxall G.R. 1993, Consumer behavior as an evolutionary process, European journal of marketing, Vol. 27, No. 8, pp. 185-92 For only $13.00 $11.05/page Learn more Johnston W.J & Lewin J.E, 1996, “organizational buying behavior: toward an integrative framework” Journal of business research, Vol. 35, pp 1-16 Kerimcan O. 2004, consumer-to-consumer interactions in a networked society: word-of-mouth theory, consumer experiences, and network dynamics, PhD dissertation; Univ. Michigan. How would you differentiate between organizational buying and individual buying?(ii) Consumer buying involves purchases in small quantities while organizational buying involves purchases in large quantities. (iii) Consumer buying is for personal consumption while organizational buying is for further production of other goods.
Why is buying behaviour of Organisational buyers different from individual buyers?The main difference between consumer buyer behaviour and organisational buyer behaviour is that consumer buying consists of activates involved in buying and using of products for personal and household use, where organisational buyers purchase primarily for organisational purpose.
What is the difference between the personal consumer and the organizational consumer?Organizational consumers purchase capital equipment, raw materials, semifinished goods, and other products for use in further production or operations or for resale to others, whereas final consumers usually acquire the finished items for personal, family, or household use.
How the buying behaviour of individual consumers differs from those of businesses or Organisations?Buying behavior varies greatly between consumers and businesses. That's because while consumers purchase goods and services for personal use, businesses buy these things either to manufacture other goods or to resell them to other businesses or consumers.
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