ORGANISATIONAL BUYER BEHAVIOUR (OBB)

Definition: Those acts of individuals or organizations involved in obtaining and using economic goods and services, including the decision processes that precede and determine these acts.

Based on a study that was done in the USA by P.J.Robinson, C.W. Faris and Yoram Wind sponsored by the Marketing Research Institute on three companies over a two years period. The works was published in Industrial Buying and Creative Marketing (Allyn & Bacon 1967). Robinson, Faris and Wind proposed that industrial buying may be conceived as a process consisting of eight sequential steps or buy-phases namely: 1. The anticipation or recognition of a problem or a need including the realization that a problem exists ,and the awareness that a solution may be be possible through a purchase of an industrial good or service. 2. The determination of the quality and characteristic of the needed item. 3. The specific description of the item needed. 4. The search for, and qualification of, potential sources 5. The examination of the sources leading to a decision concerning how the item is to be purchased. 6. The evaluation of proposals and the selection of suppliers. 7. Performance feedback 8.Evaluation. In addition, Robinson, Faris and Wind identified three distinct buy-classes which may be defined as:
1. New task: - the recognition of a purchasing problem which has not been

encountered before. The buyer will face considerable uncertainty and will seek to reduce this through the acquisition of as much information as he can obtain from both personal and impersonal sources. All the buy phases are likely to receive careful and explicit attention. Modified rebuy:- the buyer has prior experience of the purchase problem but has reason to reevaluate this in light of some new information or percepitative circumstances, eg. A lower bid from another supplier, a change in design or specification, etc. In this case some of the buy phases may be truncated or omitted 3. Straight rebuy: - the buyer is satisfied with an existing source of supply and sees no reason to change. In this case phases 4 7 are likely to be omitted altogether and only cursory attention given to the others.
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ORGANISATIONAL BUYER BEHAVIOUR A COMPOSITE MODEL OF BUYING BEHAVIOUR THE MARSHALLIAM MODEL In a client's selection of a Security Company The Model P = f [ SP(PC, EC (Ta Td), (Ea Ed), BR)] WHERE: P = purchase f = a function (unspecified) of SP = selective perception of the qualities of a good guard service PC = precipitating circumstances affecting the clients operation EC = enabling conditions of the client to be address and corrected Ta = technological advantages of the security supplier Td = technological disadvantages of the security supplier Ea = economic advantage of using a security supplier Ed = economic disadvantages of using a security supplier BR = behavioral response of a client By
Vinton King BSc. MBA.CPP Email: vintonking@yahoo.com