Organisational Buying Behaviour

“Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.”

It is basically the decisions made during B2B transactions so as to maximize profits. Buyer behavior among B2B companies today is complex. Marketers tend to talk about “the B2B buyer” as an individual tasked with making decisions on behalf of the organization, but the buyer is often a group of people with different perspectives and requirements. Steps involved in organizational buying can be shown as follows:

Being a strong Brand and a large Company Redbull would manage to get its way in terms of negotiation when it comes to B2B dealings. It will also have the advantage of a great history and current position of market leader in its product category. A bar directly buying from Redbull or a MNC that buys it in bulk for its office use can be examples for organizational buying of redbull.

To understand this concept better, it is also important to evaluate what basic differences there are between individual and organizational buying. They are as follows: 

Buying Step	Business to Business	Consumer
Problem Recognition	Anticipates and plans for purchase on a routine basis	Reacts to needs when they arise
General Description	Extensive, objective cost benefit analysis	Limited analysis of benefits, concern with total cost
Product specification	Precise technical description using techniques such as value analysis	Description more in terms of benefits
Information/ supplier research	Extensive search that extends to the search for supplier	Limited search – geographically and in terms of sources
Proposal solicitation	Formal, such as in a tender process if large volumes or values involved	May be verbal
Buying Step	Business to Business	Consumer
Supplier Selection	Made after extensive evaluation of objective information	Limited analysis with subjective and anecdotal information influemcing the decision
Order routine specification	Routine calculation of re-order points as well as time and place of delivery	Not routine
Post Purchase performance review	Extensive comparison made and feedback given, concern with quality management at source	Little basis for comparison