Industrial Buying Behaviour
CONSUMER BEHAVIOUR
LESSON 41: INDUSTRIAL BUYING BEHAVIOUR
Introduction
A model is very often referred to as an abstract representation of a process or relationship. In this chapter we are going to deal with the industrial buying process with the help of the Sheth model of Industrial buying.
• Perceived risk: When the decision involves risk, more members of the DMU will be involved.
• Type of purchase :If the type of problem is an extensive problem, then more members of
Objectives
After studying this lesson you should be able to
• the decision making unit (DMU) will be required unlike a simple repeat purchase, where a single individual can be asked to carry out the decision. Company Specific Factors (2b) are: • Organizational orientation ;-Is the firm sales and marketing oriented? Or is it technology
• Understand the industrial buying process • Explain the Sheth model of Industrial buying Behaviour
This model concentrates on the purchasing process and highlights the importance of four main factors: (a) The expectations of the individuals making up the decision making unit (b)The characteristics of both the product and the organisation (c) The nature of the decision making process (d)The situation variables These factors are discussed more in detail: 1. Expectations within the organisation These elements are mentioned under (1). According to Sheth, every person in the DMU brings with them, their unique set of attitudes and orientations. Their expectations will be conditioned by the individual background (1a) education (general or professional), role orientation (accountant, production manager, engineer etc.,) life style. Their expectation will all be influenced by: • The various sources of information (1 b) - (sales persons, exhibition and trade shows, direct mail, press releases, journal advertising, professional and technical conferences, trade news, world of mouth) and the process through which they have obtained the information.
• dominated one etc.,
LESSON 41: INDUSTRIAL BUYING BEHAVIOUR
Introduction
A model is very often referred to as an abstract representation of a process or relationship. In this chapter we are going to deal with the industrial buying process with the help of the Sheth model of Industrial buying.
• Perceived risk: When the decision involves risk, more members of the DMU will be involved.
• Type of purchase :If the type of problem is an extensive problem, then more members of
Objectives
After studying this lesson you should be able to
• the decision making unit (DMU) will be required unlike a simple repeat purchase, where a single individual can be asked to carry out the decision. Company Specific Factors (2b) are: • Organizational orientation ;-Is the firm sales and marketing oriented? Or is it technology
• Understand the industrial buying process • Explain the Sheth model of Industrial buying Behaviour
This model concentrates on the purchasing process and highlights the importance of four main factors: (a) The expectations of the individuals making up the decision making unit (b)The characteristics of both the product and the organisation (c) The nature of the decision making process (d)The situation variables These factors are discussed more in detail: 1. Expectations within the organisation These elements are mentioned under (1). According to Sheth, every person in the DMU brings with them, their unique set of attitudes and orientations. Their expectations will be conditioned by the individual background (1a) education (general or professional), role orientation (accountant, production manager, engineer etc.,) life style. Their expectation will all be influenced by: • The various sources of information (1 b) - (sales persons, exhibition and trade shows, direct mail, press releases, journal advertising, professional and technical conferences, trade news, world of mouth) and the process through which they have obtained the information.
• dominated one etc.,