English High School

1 List and discuss the key characteristics of organizational buying that make it difference from consumer buying

2. What is a buying centre? Describe the roles assumed by people in a buying centre and what useful questions should be raised to guide any analysis of the structure and behaviour of a buying centre.

3. Assume you are a food manufacturer and you are trying to sell your line of imported jams and jellies to a major grocery store chain. Who in the chains buying centre would you expect to attend a meeting with you, and what would each members concerns be?
4.. Think about the materials and parts that go into the manufacturing of automobiles. How does derived demand play a role in this?

5.List the ways to segment the business market.

Answers

Answer 1

Characteristics of Organizational Buying that make it different from Consumer Buying. The following are the key characteristics of organizational buying that distinguish it from consumer buying: Organizational purchasing decisions are more complicated than consumer purchasing decisions because they frequently involve more money and people.

While a consumer typically buys goods or services for personal use, a company buys them for production, resale, or other purposes. Organizational buying decisions frequently necessitate a greater degree of collaboration among various departments. Purchasing objectives are distinct: Organizations are motivated to purchase goods and services for specific reasons, such as increased efficiency, cost reduction, or productivity gains. As a result, purchases made by firms are frequently based on the outcomes or benefits that the goods or services will provide to the organization, rather than personal preferences of individual buyers. Decision-making is collective: Organizational buying frequently involves more than one person, and decisions are frequently made by a committee or group.

Recommenders: These individuals evaluate potential suppliers, make recommendations to the decision-making team, and sometimes participate in the negotiating process. Gatekeepers: These are the individuals who regulate the flow of information within the organization. Their primary responsibility is to ensure that only relevant information is communicated to the decision-making team. Decision Makers: These are the individuals who make the final purchasing decision. They are responsible for selecting a supplier and negotiating the terms of the purchase.

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