Buying Patterns of Customers:
Organisational approach to making purchases and their buying patterns are different compared to final consumers in many ways.
Formality: All organizations make their buying decisions in a formal and planned way. As maximum organizational purchases are likely to be complicated and technical and monetary risks are drastically high, buying behavior is very complex in comparison to ultimate consumers. Due to these causes, there may be more formality in decision-making and regularly proposals, quotation demands and procurement contracts are involved.
Negotiations: Negotiation while buying is a common characteristic of the buyer. Buyers do very extensive negotiations while organisation buying and supplies for a longer span of time. A few major reasons for extensive negotiations are
(1) The product complexity involves that conditions must be cautiously communicated agreed
(2) The order range tends to be bulky and buying price is important and
(3) Generally there are many people involved in making a final purchase decision.
According to Paul A. Dion and Peter M. Banting, negotiations tend to be a cooperative process between buyers and suppliers.
Less Frequent Purchases: Organizations typically make purchases much less regularly than do ultimate Firms may purchase capital machine so that it will be used for the manufacturing process for coming years. Similarly, computers, photocopying machines, printers etc., are not purchased frequently. Even workplace supplies are bought at regular interval of a month or more. Raw stuff and other things are used constantly in manufacturing and changed regularly however contracts for the sale and delivery of those objects are probable to be long-time period agreements which are negotiated each few years.
Reciprocity: Sometimes organisational purchase transactions contain a contract in which two establishments agree to buy from every For example, a pc software program manufacturer may agree to shop for pc hardware from a agency that purchases its software program and pc supplies.
Service: In many cases, organisational goods have to be customized for a particular organisational buyer. Product support activities, like service, setting up, technical help and spare parts are important.