What are the characteristics of organizational buying behavior?

Question

What will be an ideal response?

Answer 1

Understanding the characteristics of organizational buying is essential in designing effective marketing programs to reach these buyers. According to Figure 5-2 in the textbook, key characteristics of organizational buying are: (1) Market characteristics, such as (a) derived demand for industrial offerings, (b) few customers typically exist, and (c) the purchase orders are large. (2) Product or service characteristics, such as (a) products or services are technical in nature and purchased on the basis of specifications, (b) many of goods purchased are raw and semifinished, and (c) there is a heavy emphasis placed on delivery time, technical assistance, and postsale service. (3) Buying process characteristics, such as (a) technically qualified and professional buyers who follow established purchasing policies and procedures, (b) buying objectives and criteria are typically spelled out, as are procedures for evaluating sellers and their products or services, (c) there are multiple buying influences and multiple parties participate in purchase decisions, (d) there are reciprocal arrangements, and negotiation between buyers and sellers is commonplace, and (e) online buying over the Internet is widespread. (4) Marketing mix characteristics, such as (a) direct selling to organizational buyers is the rule, and distribution is very important, (b) advertising and other forms of promotion are technical in nature, and (c) price is often negotiated, evaluated as part of broader seller and product or service qualities, and frequently affected by quantity discounts.