Organizational Buying Behaviour

                                             Organizational Buying Behaviour

Organization Buying is the decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and supplies.
Organizational buying is very similar to individual buying with some contextual differences. Organizations Buy in furtherance of organisational objectives, such as manufacture and deliver goods and services to the members, customers and community. Organisational Buying is heavily influenced by derived demand, it demand for the end product or the product or services demanded by the customers from the buyers. Overall customer demand is impacted by economic, social, political and technological factors in the environment.

                                                    Organizational Buying Process

Three types of buying situation:

1. New Task- In this situation organisation is the first time buyer of the product or service. This involve great risks, so the buying center is enlarged to include all who have a stake in new buy.
2. Modified Rebuy- In this situation users, influencers, or deciders in the buying centers want to change the product specifications, price, delivery,schedule or supplier.
3. Straight Rebuy- In this situation buyers reorder an existing product or services from the list of acceptable suppliers.

For Heads & Shoulders the buyer would be the retailers,market stalls,personal care stores, convenience stores,medical stores,Utilize P&G distribution leverage or the franchisees or the mom and pop stores that buy Head & Shoulders in bulk to sell in their shops. Bulk buyers helps in getting the buyer better and cheap prices for that product.