Difference between Consumer and Organisational Buying Behaviour - Management Duniya

Difference between Consumer and Organisational Buying Behaviour

Difference between Consumer and Organisational Buying Behaviour:

There are no.of reasons that can be identified to differentiate the process of buying for an individual consumer and Industrial consumer.

Organisations buy products in to services to reach their organisational goals. These goals should be profit maximisation, cost reducing, meeting employee needs and satisfy legal obligations. Therefore organisations are more rational during the purchase; however individuals by goods & services for their own satisfaction & other factors could influence the buying behaviour to very small extent. Hence, consumer buying process could be more spontaneous.

 More people are involved any organisation buying. There may be wide range of influences in the decision making process which could be from the various levels in the organisation. In consumer buying behaviour also they exists many roles played by different individuals. However, the extent or degree of people participation is very less in individual buying process.

  Organisation purchases are more likely to be based on formal routing like purchasing policies, constraints & requirements established by the organisations. This is not applicable to individual purchases and hence is more informal.

The poor performance of a product might cause annoyance to a customer & may not result in the repurchase of the same product. But in case of business buyer it could need to financial loss non achievement of goals.

In the process of reducing risk of the organisational buyer, the manufacturers face a greater attention to the development of product for organisational buyer, because he would seek for a longer relationship between buyer and seller with the organisation. However he may not resort to such measures for individual buyer.

Since the organisational is more formal, therefore the complexity of the process also increases. It could be a time consumer product & lot of people & various level & departments could be involved in the organisational purchase. However this is not the case in individual purchase.

Source: Books & Notes

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By: Management Duniya