Organizational Buying Behaviour

Organizational buying behaviour is a choice making procedure by which formal associations build up the requirement for products and services and recognize, assess and pick among available options of brands and suppliers. The organizational buying process is entirely different from the consumer buying process. While buying decisions are made relatively easily and quickly by individual customers, organisational buying involves thorough and deep analysis. Organizations purchase products ranging from highly complex machinery to small components. In an organization, the purchase decisions are influenced by several individuals and are not made in isolation by an individual. Organizational buyers are more concerned about the price and quality of the product along with the service being provided by the vendor. Service also plays an important role, because no organization would like to buy goods from a vendor who cannot provide timely and efficient service. Organizational markets normally purchase the goods or services for producing other goods and services, using these as raw materials. There are also resellers, who purchase the products to sell directly to other customers without any modifications. In Amul dairy cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of consumers in India. These cooperatives collect on an average 9.4 million litres of milk per day from their producer members. Another example is retailers that buy amul milk in bulk to sell in their shop. Buying in bulk helps in getting the buyer better and cheap prices for that product. The Organizational Buying Process: ●In NEED RECOGNITION the organization recognizes a problem or need that can be met by acquiring a good or service. For example for making chocolates different ingredients are needed. So at this stage the need would be established. ●In NEED DESCRIPTION buyer determines the needed item’s general characteristics and required quantity. Here the characteristics and quantity of milk required is specified on quality terms like fat content etc. ●In PRODUCT SPECIFICATION buyer develops technical specifications of the product to be purchased. ●In SUPPLIER SEARCH the buyer identifies the most suitable supplier through trade directories and then contacts other companies, trade advertisements, trade shows and the internet. The Anand Pattern is essentially an economic organizational pattern to benefit small producers who join hands forming an integrated approach in order to economy of a large scale business. The whole operation is professionally managed so that the individual producers have the freedom to decide their own policies each member's milk is tested for quality with payments based on the percentage of fat and SNF. At the end of each year, a portion of the DCS profits is used to pay each member a patronage bonus based on the quantity of milk poured. ●In PROPOSAL SOLICITATION the buyer invites qualified suppliers to submit proposals. ●In SUPPLIER SELECTION the buyer selects a supplier according to the needs of the organization and attributes of the supplier. The final selection of the supplier will be done at this stage. ●In ORDER ROUTINE SPECIFICATION the buyer negotiates the final order with the supplier, listing the technical specifications, quantity needed, expected time of delivery, return policies, warranties etc. ●In PERFORMANCE REVIEW the buyer periodically reviews the performance of the chosen supplier The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers’ .Amul continues to inspire one and all interested not only in dairying but also in other areas, people involved in the rural development and sustaining livelihood through massive employment generation.