List and discuss the key characteristics of organi-
zational buying that make it different from con-
sumer buying
An organization can be any sector that imports the raw materials required to manufacture completed products equipment, industrial machinery, and other services.
The conduct of buyers as individual buyer behavior and corporate buyer behavior can be categorized into two groups. Ultimate clients purchase consumer products or services and various organizations purchase products or services for specific reasons.
The characteristic of organizational buying behavior differs from consumer buying are;
- Derived Demand
Depending on derived demand, corporate purchasing is centered. Demand generated by the ultimate customer induces demand for manufacturing products or services.
- Geographical Concentration
Organizational customers remain focused in some geographical areas, while the market for consumers is dispersed among it.
- Few Buyers And Large Volume
The number of organizational buyers stays limited but sales volumes are high. Therefore, organizational marketers concentrate on their activities on a few key customers who purchase products or services in loud proportion paying high charges.
- More Direct Channel Of Distribution
In the dynamic network of wholesalers and suppliers, a vast volume of consumer products or services are marketed. Direct interaction is formed among purchasers and sellers in organizational sales.
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