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Consumer behaviour

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Consumer behaviour

  1. 1. CONSUMER BEHAVIOUR Industrial Buying Behaviour
  2. 2. Outlines Introduction Industrial Buyer Meaning Definition Factors Influencing Characteristics Conclusions
  3. 3. Introduction Industrial buying is a complex process of Decision making and communication. It Involves several members and considerations. Need recognition is the first step while making a purchase decision.Increase in economy results into creation of demand for Industrial goods & services,Industrial buying different from consumer buying involves buying like machinery, Packaging material & services such as Insurance consultation & transportation, few buyer of industrial goods.
  4. 4. Industrial Products Involves • Raw Materials • Fabrication parts &Material • Installation of Machinery • Operating Suppliers • Equipments
  5. 5. PARTICIPANTS IN BUYING BEHAVIOUR
  6. 6. INDUSTRIAL BUYING BEHAVIOUR Meaning: Industrial buying behaviour refers to the study of the motives and actions of, and influences upon, industrial buyers while engaged in the purchasing of goods and services
  7. 7. Indusrtial Buyers Indusrtial buyer is an individual business, government agencies are associations who make purchase decisions regarding services, raw materials, product components are finished goods are called organizational buyers.
  8. 8. Typical Work Activities of Buyers
  9. 9. Factors Influencing Buying Behaviours There are number of external and internal factors that directly or indirectly effect organizational buying behavoiur. Economic factors are considered very important role in buying. Other factors are political influncers that are dominant. Organizational buying is also situational and situationsplay an important role. Most thinkers feel that these influencers can be grouped under four major headings.
  10. 10. External Environmental Factors Under this heading we have social,political,legal,cultural,economic factors that interact with each other, for example they could be power shortages, credit squeezes,political and economic changes, which govern many of the rules regulations. The shortage of raw meterials leads excessive tariffs and taxes for a particular item. These affect the buyer behaviour and the industey has to adapt itself to these chenges.
  11. 11. Organizational Factors • An organization is purposefully created and deliberately structured to attain specific objectives. These objectives and polices differ in every organization. Every organization had a climate and culture of its own. The organization is interested in selling its products to the industries that have a “buying center” or, a group of people who have the authority to buy. The marketer of industrial products thus wants to know who constitutes this “power center”,
  12. 12. Interpersonal Factors The buying center consjsts of a number of persons who are involved in buying. It is an inter Personal activity. Those people come from various levels of the organization . They have different backgrounds, different expiries, different values and considerations. They play different roles and make the buying more complex. In some cases this leads to a conflict, which has to be solved, and uniformity and harmony is made to prevail between members involved in buying.
  13. 13. Individual Factors The buying center consists of individual factors such as, income, education, job, position and risk taking.
  14. 14. Characteristics of Industrial Buying Behaviour • Organizational buying is a multi-persone buying activity • It is a formal activity which follows the procedures laid down in a organization • Longer time lags between efforts and results • Rational but also emotional activity • The uniqueness of organizations

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