Interpersonal Dynamics Of Industrial Buying Behaviour 70215j

Interpersonal dynamics of industrial buying behaviour 4/14/12

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Major Influences on Business Buyers

En vir on me ntal Ec on omi c, Tec hn olo gic al, Pol itic al, Co mp etiti ve & Cul tur al Org ani zati ona l Obj ecti ves , Poli cie s, Pro ced ure s, Str uct ure, & Sys tem

Inte rpe rso nal Aut hor ity, Sta tus, Em pat hy & Per sua siv ene ss Indi vid ual Ag e, Ed uca tio n, Job Po siti on, Per son alit y& Ris

Bu yer s

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Purchasing’s influence on buyer behavior Material requirement planning (MRP) : is a production planning and  inventory control system used to  manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. 

An MRP system is intended to simultaneously meet three objectives: 

Ensure materials are available for  production and products are4/14/12 available

Just-in-Time (JIT) 

is a production strategy that strives to improve a business'  return on investment by reducing inprocess inventory and associated  carrying costs.



JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. 

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To achieve continuous improvement key areas of focus could be flow,4/14/12 employee

Centralized purchasing 

When the purchasing function is entrusted to a single person, it is said to be centralized purchasing. It means all purchases are made by the Purchasing Officer. Generally large and medium size organisations accept centralized purchasing.

Buyer technology 

Computers are used in online purchasing 4/14/12 orders, & online purchasing order

Buying center involvement & interaction pattern 

t decision making



Interaction pattern  Vertical  Lateral

involvement involvement

 Extensivity  Connectedness



Purchase situation influence



Organizational influence

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Psychological factor influencing individual decision making 

differences in role orientation

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Difference in information exposure

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Perceived risk in vendor selection process

Strategies  Reduce

uncertainty by gathering more information

 Play

the odds: using sophisticated analysis methods

 Spread

the risk

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Conflicts & resolution in t decision making Conflict -resolution strategies 

Competing – assertive, uncooperative, win –loose power struggle



Accommodating- peaceful co-existence, unassertive, cooperative behavior



Collaborating : mutual satisfaction, assertive, cooperative behavior



Avoiding : postponing an issue unassertive, uncooperative behavior



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Compromising : mutually acceptable

Party,s attempt to satisfy own concern

competi collaborating ng

compromi sing

Avoidi Accommo ng dating Party,s attempt to satisfy 4/14/12 others concern

Powers in conflict resolution 

Reward Vs coercive power



Legitimate power



Expert power

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