Factors influencing industrial buying (ism)
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Industrial buying decisions are influenced by environmental, organizational, interpersonal, and individual factors. Environmental factors include economic conditions, technological changes, politics/regulations, and competition. Organizational factors comprise a company's objectives, policies, procedures, structure, and systems. Interpersonal factors stem from relationships between buying center participants and their ability to influence one another. Individual factors relate to personal characteristics like age, income, education, job role, personality, and risk attitudes.
Factors influencing industrial buying (ism)
- 1. Introduction Industrial buying are subject to many influences. Some marketers assume that the major influences are economic. They think buyers will favor the suppliers who offers the lowest price or the best product or the most service. There are some major influences listed below.
- 2. Major Factors Influencing Industrial Buying • • • • Environmental Organizational Interpersonal Individual
- 3. Environmental Organizational Factors Interpersonal Individual • Economic Developments • Technological Changes • Political and Regulatory developments • Competitive developments • Culture and Customs • • • • • • • • • • • • • • Objectives Policies Procedures Organizational Structure • Systems Authority Status Empathy Persuasiveness Age Income Education Job Position Personality Attitudes
- 4. Environmental Factors Business buyers are heavily influenced by factors in the current and expected economic environment , such as level of primary demand , the economic outlook etc. Business buyers are also affected by technological , political and competitive developments in the environment . The business buyers must watch these factors , determine how they will affect the buyer and try to turn these challenges into opportunities.
- 5. Organizational Factors Each buying organization has its own objectives , policies , procedures , structure and systems and the business marketer must understand these factors well. Questions can arise : how many people are involved in the buying decision ?; who are they ? What are the evaluative criteria ? What are the company’s policies and limits on its buyers ?
- 6. Interpersonal Factors The buying center usually includes many participants who influence each other , so interpersonal factors also influence the business buying process. Participants may influence the buying decision process because they control rewards and punishments , are well liked , have a special relationship with other important participants. Business marketers must try to understand these factors and design strategies that take them into account
- 7. Individual Factors Each participants in the business buying decision process brings in personal motives , perceptions and preferences. These individual factors are affected by personal characteristics such as age income ,education , professional identification , personality and attitudes towards risks.