Features of organizational buying process:
- Buyers: Fewer buyers buy large volume in geographically concentrate areas.
- Demand: The total demand is inelastic. It is not affected by price changes. The demand is derived from the demand for consumer goods. The demand is known as Derived Demand. It keeps on fluctuating because a small change in consumer demand results in major shift in organizational demand.
- Relationship: The relationship between supplier and customer is close. This is due to few and large customers.
- Professionalism: Professional and trained people make purchase. Purchase policies require buying instruments like quotations, tenders, contracts etc.
- Channel: Organizations generally buy direct from manufacturers. Purchasing agents are also used.
- Buying Influences: More participants influence buying decisions. Buying committees and evaluation committees are used. Personal selling is important.
- Rationality: Buyers are informed and are more rational in making buying decisions. The buying criteria can be value, quality or service.
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