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Organizations behavior

There are basically three major types of buying situations, namely the straight rebuy, modified rebuy and new-task buy. In a straight rebuy situation the buyer reorders a product or service without any modifications on a routine basis through the purchase department. In a modified rebuy situation the buyer may wish a modification in product/service specifications, prices, terms of supply etc. This situation usually involves more number of participants in the buying decision process.

In a new task buying situation the company is buying a product or service for the first time. In such a situation the organization buying process is more complex and involves many more number of participants from different departments in the organization. The buying company also needs to decide on the product/service specifications, prices, delivery terms, order quantities, service terms etc. The organization buying behavior is influenced by environmental forces like changes in the domestic and global economy and changes in the technologies.

The rapid strides made in information technology especially Internet technology has had a major influence in the way businesses buy. For example most of the small and large business organizations buy computer systems from Dell through its well developed website www. dell. com. Organization buying behavior

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is also influenced by the organizational forces like centralization and decentralization of purchase and strategic role and priorities of purchase prevalent in the given organization.

The group forces influencing behavior include the composition, motives and the roles played by each member of the buying center. Companies involved in business to business marketing need to clearly identify the buying situation, the stage or the phase in the buying decision making process for the product being offered, the various forces influencing the buying organizations behavior, the composition of the buying center, the role played by each member of the buying center and the criteria on which they evaluate the suppliers for each individual customer.

Based on such an understanding they should evolve suitable marketing strategies for success. References Anderson, James, C. and Narus, James, A. 2004. Business market management: Understanding, creating and delivering value, Singapore: Pearson Education Inc. Dell, http://www. dell. com/, (Accessed 22 November, 2008) Edwards, Cliff. 2006. Inside Intel, Business Week, January 9, pp. 43-53 Giglierano, Vitali. 2002. B

usiness to business marketing: Analysis and practice in a dynamic environment, Singapore: Thomson South Western. Hancock, M. , R. John and P’Wojcik. 2005. Better B2B selling, The McKinsey Quarterly, June Howard, John, A, Sheth, Jagdish, N. 1993. The theory of buyer behavior, NY: John Wiley and Sons Hutt, Michael, D. and Spey, Thomas, W. , 2004. Business marketing management, Singapore: Thomson South Western, pp. 89-115. Kotler, Philip. And Armstrong, Gary. 2006. Principles of marketing, London: Pearson Education Inc.

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