Characteristics of Organizational Buying Behavior

Organizational buying behavior is defined as the decision-making process undertaken by an organization before making a purchase for its operations. This behavior can include research, price comparisons, and other factors which influence the final decision. Characteristics of organizational buying behavior include: 1. Rational Decision Making – Organizational buying decisions are usually done with a logical and systematic approach. Decisions are based on facts, rather than opinions or emotions. 2. Group Dynamics – In organizational buying, decisions are usually made by a team comprising of various departments and people. Each member is likely to have their own preferences and influence. 3. Technical Factors – Organizational buying decisions are often based on technical considerations such as compatibility, performance, and long-term reliability of the product. 4. Long-Term Focus – Organizational buying often has a long-term focus as it tends to be for investments that can benefit the organization for extended periods. 5. Risk Management – Organizations usually analyze the risk associated with a purchase before making a decision. This can include financial, legal, and supply chain risks. 6. Supplier Relationships – Since the purchasing process often involves complicated negotiations, building and maintaining relationships with suppliers is often essential. This allows the organization to better understand the market and to build a stronger bargaining position. 7. Cost Considerations – Cost is often an important factor in organizational buying decisions and organizations usually compare costs thoroughly before