Consumer Buyer Behaviour and Organisational Buyer Behaviour - Essay Example

?Consumer Buyer Behaviour and Organisational Buyer Behaviour Table of Contents Consumer Buyer Behaviour and Organisational Buyer Behaviour Table ofContents 2 Introduction 3 Difference between Both the Buyer Behaviours 4 Conclusion 9 References 10 Bibliography 13 Introduction The buying behaviour of the consumers and organisations are believed to differ in a significant way in terms of their buying process and decision making. It becomes important to gain an insight into the stated kind of behaviours in order to comprehend the differences between them. Buying behaviour is stated to be the compilation of decisions as well as actions of individuals entailed in purchasing and making use of products. The consumers are observed to usually undergo a psychological course of action while making purchase of products. This particular course of action is frequently regarded as “consumer buying process”. The buying process of the consumers entails few different stages while arriving at a final purchase decision. The ‘consumer buying behaviour’ is explained to be the buying of the products for the reason of personal or even household use but is not indulged in for any kind of business intentions. In the similar way, organisational buying is referred to be a multifaceted process related to decision making as well as communication. This multifaceted process is learnt to occur over time entailing numerous organisational members along with their association with the other existing organisations as well as institutions. The process of organisational buying behaviour is observed to be a definite behaviour that involves more than just an easy process related to placing of orders with regard to the suppliers. ‘Organisational buying behaviour’ is referred as the course of action related to decision making with the help of which the official organisations create the requirement for the purchased services as well as products. The official organisations are also believed to recognise, assess and select among the other suppliers and brands. Thus, this complete process is known as the ‘organisational buying behaviour’ (Ferrell & Hartline, 2010). Difference between Both the Buyer Behaviours Businesses, institutions and governments each are known to possess their own respective individual patterns related to buying behaviour. It needs to be mentioned and comprehended in this respect that the widely explained practice of organisational buying is believed to differ from the process related to consumer buying in certain significant ways. The innate challenges witnessed in the process of organisational buying compared to the consumer purchases are taken into concern from the external as well as internal viewpoints. To be specific, the external associations with regard to the buyer as well as the seller in case of organisational buying are believed to be reliant on the aspect of derived demand. This particular facet of derived demand is referred as an increasingly difficult buying as well as selling process along with involving an increasingly intense customer base. In comparison, the consumers are observed to indulge in purchases for the reason of their respective personal as well as household use along with involving a comparatively less difficult procedure and symbolising an assorted consumers group (Sheth, 1973). Internally, the organisational purchasers entail a tendency to provide increasing focus compared to the final consumers on the aspect of technology as well as superior performance. Greater emphasis is also learnt to be laid on the factor of customisation for the reason of catering to the definite necessities along with the guiding principle related to order-fulfilment. This factor of order-fulfilment is believed to involve manufacturing to ordering in comparison to just filling of a particular order related to finished products with regard to an accessible inventory (Oxford University Press, 2011). In comparison to the final consumers the organisational purchasers are also believed to entail a tendency of indulging in purchases of increasingly technical goods involving lesser degree of standardisation. The organisational purchasers involve in purchasing bigger quantities along with higher degree of prominence on the existing services with respect to the product in comparison to the consumers. Organisational purchasers are also believed to involve higher degree of prospects related to price negotiations and in terms of buying straight from a particular manufacturer or even with the aid of efficient distribution channels. Therefore, it could be comprehended from the above discussion that organisational buying behaviour differs significantly in a number of ways from the consumer buying behaviour (University of London, 2004). The organisational buying behaviour differs from the consumers owing to the fact that the organisations entail additional requirements, for instance, the aspect of making profits and even legal responsibilities towards the respective customers. It was earlier mentioned in the discussion that the decision making practice related to consumers and organisational buying behaviour varies significantly. The decision making process related to organisational buying is believed to call for the involvement of increased number of individuals and is also learnt to entail certain official procedures as well as policies that are required to be necessarily pursued. A consumer is usually believed to indulge in a buying behaviour on the identification of a particular problem, for instance, the breaking down of one’s washing machine. Majority of the consumers are learnt to initiate a buying procedure on the identification of a particular problem or need (Kotler & Armstrong, 2008). Then, the consumer looks for information regarding the brands of the required product that is expected to efficiently cater to the need. The consumer then comes to a final decision regarding buying a product after exploring the available information for the definite kind of product. The decision making process related to the organisational buying behaviour is also believed to be initiated with the identification of a problem, for instance, an organisation that is involved in the production of televisions sets witnesses a shortage of screens which certainly becomes a problem for the organisation (Pride & et. al., 2009). The organisational buyer then attempts in recognising the kind and quantity of screens or products that is required with the help of technical help or exploration. Once the organisation identified the definite kind and quantity of the required product, it then seeks for a particular supplier who would be appropriate in catering to that organisational requirement with the correct quantity as well as quality followed with the appropriate price. On the recognition of an appropriate kind of supplier, the organisation then orders for the required products with the help of its official ordering procedures. The most significant difference in between both the buying behaviours is observed to be the involvement of individuals in the processes. In the process of a ‘consumer buying behaviour’, the consumer is considered to be the sole individual who is engaged in the complete decision making process (David, 2008). However, in the process related to an organisational buying behaviour there is believed to be the involvement of numerous individuals at different stages engaged in the process of decision making (Richardson & Gosnay, 2010). In other words, it can be stated that there exists certain differences between the features related to ‘organisational buying behaviour’ in comparison to the ‘consumers buying behaviour’. The ‘organisational buying behaviour’ is believed to be more structured and focused on the kind of products as well as services that are needed to be purchased by them (Webb, 2010). The organisational buyers are observed to operate as a member related to a specific team or a purchasing centre whereas, the consumers operate as individuals. The organisations indulge in purchases for making use of the products in manufacturing goods as well as services for their respective customers but consumers are believed to indulge in purchases for their own personal or household purposes (Wright, 2006). The organisations are also observed to make purchases in huge quantities and needs customisation of the products to certain degree with regard to their made purchases. The consumers do not call for the requirement of customisation for their purchased products (Anderson & Vincze, 2006). The requirement of the organisational products as well as services fails to exist independently. It is believed to be drawn from the final requirement of consumer goods as well as services. Thus, organisational demand is also known as derived demand (Pride & Ferrell, 2004). The organisational buyers indulge in purchases of goods as well as services with the intention to make use of the purchased products in manufacturing other kind of goods as well as services. The final produced products or even the services are then made available for the consumers. Therefore, in organisational marketing, the requirement of organisational goods as well as services is believed to be obtained from the preferred goods as well as the services of the consumers. For instance, the requirement associated with superior quality of steel tubes is observed to prevail in market. It is believed to be required for the reason of manufacturing bicycles, scooters, motorcycles and furniture that are known to be demanded by the consumers (Malaval & Benaroya, 2004). Thus, it can be inferred from the mentioned instance that the requirement of superior quality steel tubes gets obtained from the prediction of the consumers’ requirement of motorcycles, furniture, bicycles and furniture. In the instance of capital products like equipment and machinery that are made use of for the reason of manufacturing other kind of products, the purchases are not just made for the present demands but also with interest of profit that could be earned from their utilisation related to the future. The resources or rather the products purchased by the organisational buyer entails the criteria of pleasing the buyers’ rational compared to its emotional considerations. Therefore, the comprehension of regarding the buying behaviour of the consumers helps the organisations in understanding the prevailing demand of the kind of product. This helps them to opt for the manufacturing of the specific product category in demand (Malaval & Benaroya, 2004). The differences in the buying behaviour of the organisations and the consumers help in planning their respective planning strategies in accordance with their individual requirement. In case of organisational buying, the number of organisations is observed to be much less in comparison to the individual consumers. This implies that the marketing strategies need be so designed by the suppliers which would prove competent in manipulating the purchase decisions of the organisations. The offers and the prices need to be designed appropriately for the organisations along with emphasising on the degree of customisation (Wind & Cardozo, 1974). In case of consumer buyer behaviour, the consumers need to be attracted towards the products which entail the need of designing of advertisements which would prove to be appealing to the consumers. Therefore, one of the important strategies with respect to consumer buying would be extensive advertisements. This strategy would not apply for organisational buying as the suppliers need to appeal the organisations on the whole and not just single individuals (Berkowitz, 2010). Conclusion The above discussion helps to bring out the difference between the buying behaviour of the consumers as well as the organisations effectively. The discussion proves that a significant difference does exist between the buying behaviour of both. These differences prove helpful in planning the marketing strategies in relation to both the buying behaviours for definite brands as well as different product categories. It was also found from the above discussion that the buying behaviour of the organisations to a large extent depended on the requirement of the consumers. The differences identified with regard to both the buying behaviours are believed to considerably prove helpful in planning the marketing strategies in accordance with their respective features and requirements. References Anderson, C. H. & Vincze, J. W., 2006. Strategic Marketing. Dreamtech Press. Benaroya, C. & Malaval, P., 2004. Strategy and Management of Industrial Brands: Business to Business Products and Services. Springer. Berkowitz, E. N., 2010. Essentials of Health Care Marketing. Jones & Bartlett Learning. David, J., 2008. Selling and Sales Management. Pearson Education India. Ferrell, O. C. & Hartline, M., 2010. Marketing Strategy. Cengage Learning. Kotler, P. & Armstrong, G., 2008. Principles of Marketing. Pearson Education India. Oxford University Press, 2011. Organizational Buying Behaviour. The Organizational Marketing Context, pp. 32-62. Pride, W. M. & et. al., 2009. Business. Cengage Learning. Pride, W. M. & Ferrell, O. C., 2004. Marketing: Concepts & Strategies. Dreamtech Press. Richardson, N. & Gosnay, R. N., 2010. Develop Your Marketing Skills-Creating Success Series. Kogan Page Publishers. Sheth, J. N., 1973. A Model of Industrial Buying Behaviour. Journal of Marketing, pp. 50-56. University of London, 2004. Consumer and Industrial Marketing. Marketing, pp. 35-48. Webb, K., 2010. Consumer Behaviour. Tata McGraw-Hill Education. Wind, Y. & Cardozo, R., 1974. Industrial Market Segmentation. Industrial Marketing Management, pp. 153-166. Wright, R., 2006. Consumer Behaviour. Cengage Learning EMEA. Bibliography Baker, M. J., 1998. Marketing: Managerial Foundations. Macmillan Education AU. Chernatony, L. & et. al., 2010. Creating Powerful Brands. Routledge. Dibb, S. & Simkin, L., 2001. The Marketing Casebook: Cases and Concepts. Cengage Learning EMEA. Ellis, J. H. M. & et. al., 2002. Cross-cultural Industrial Organisational Buying Behaviour in China and United Kingdom: Comparative Organisational Effectiveness Issues and Perspectives. Bournemouth University, pp. 1-12. Horton, R. L., 1984. Buyer Behavior: A Decision-Making Approach. C. E. Merrill Pub. Co. Kacen, J. J. & Lee, J. A., 2002. The Influence of Culture on Consumer Impulsive Buying Behavior. Journal of Consumer Psychology, Vol. 12, Iss.2, pp. 163-176. Patel, S. & Schlijper, A., 2012. Models of Consumer Behaviour. Unilever Corporate Research. Solomon, M. R., 2010. Consumer Behavior: Buying, Having, and Being. Prentice Hall. Saxena, R., 2009. Marketing Management. Tata McGraw-Hill Education. Vida, I., 2009. A Strategic Household Purchase: Consumer House Buying Behavior. Managing Global Transitions, Vol.7, Iss. 1, pp. 75-96. Weele, A. J. V., 2009. Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice. Cengage Learning EMEA. Winer, R. S., 2007. Marketing Management. Pearson Education India. Read More