Industrial buying behavior is the pattern of actions by a company involved in manufacturing, processing and other heavy industry. Many of these companies are required to make regular purchases as a means of supplying their business.
Industrial buying behavior is ultimately influenced by forces within the organization as well as environmental forces. The status and operating procedures of purchasing, the degree of involvement and interaction of various group members, and their different perceptions have a significant impact on purchasing decisions. Effective and responsive industrial marketing strategy depends on the industrial marketer's knowledge of how industrial buying behavior is affected by forces within the organization.
Factors affecting Industrial Buying Behaviour:
Industrial buyers make buying decisions to buy goods for their organization's use to meet organization goals and objectives. They use their skills and buying methods to get the best deal from the sellers or suppliers. Many studies and research have been conducted in this field and have pointed out that many factors including personal and non-personal factors help in the buying decision process. these are:
Environmental factors: These factors are external to the organization and influenced by the socio-economic environment etc. These factors are not always within the control of buyer or seller organizations and they need to adjust themselves according to environmental factors.
Organizational Factors: each organization has its internal objectives, policies and rules, its culture, hierarchy or structure and system. Buying decisions are also influenced by the company's atmosphere for honest and objective buying methods.
Interpersonal Factors: As all organizations are managed by people who carry out their respective roles assigned to them, the buying decision involves several layers of human activity culminating into group decisions.
Individual Factors: The organization's decisions are influenced by individual personality traits, age, income, family background, education, designation and loyalty to the organization. These factors will shape buyers, attitudes and mindsets about certain manufacturers and products.