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1. A Mini Project report submitted in partial fulfillment of the requirements for the
Award of the Degree of 3rd Semester
MASTER OF BUSINESS ADMINISTRATION
OF
BANGALORE UNIVERSITY
Submitted By
Name : VIDHUN KRISHNA VS
Reg No: 20UHCMD108
Under The Guidance Of
Faculty Name: Ms.SUDHA
Assistant Professor
Department of Management
EAST WEST COLLEGE OF MANAGEMENT
No.63, Off MagadiRoad,Vishwaneedam Post, Bharath
Nagar, Bangalore-560091
Bangalore University
2020-2022

2. STUDENT DECLARATION
• I, Vidhun Krishna V S hereby declare that the mini project report entitled “FACTORS
INFLUENCING ORGANISATIONAL BUYING” with reference to the subject “CONSUMER
BEHAVIOR” prepared by me under the guidance of Ms.SUDHA faculty of MBA
Department,EWCM. I also declare that this mini project work is towards the partial fulfillment of
the University regulations for the degree of Master of Business Administration by College. I further
declare that this project is based on the original study undertaken by me and has not been submitted
for the award of any degree from any other University/Institution.
• Place: Bangalore HOD Dr.D. Sandhya
• Date: Signature:
• Name: Vidhun Krishna V S Ms.SUDHA
• Signature: Signature:

3. FACTORS INFLUENCING ORGANISATIONAL
BUYING

4. INTRODUCTION
Organization buying is the decision-making process by which formal organizations establish the need for purchased
products and services and identify, evaluate and choose among alternative brands and suppliers. Organisations buy in
furtherance of organizational objectives, such as to manufacture and deliver goods and services to members, customers
or the community. Organizational buying is heavily influenced by derived demand, that is, demand for an end product
or for a product or service sold by the buyer’s customers. The demand for components by a manufacturer will be
dependent on demand coming from their customers, the retailers and wholesalers, who in turn are reacting to demand
from their customers, the consumers. Overall consumer demand may in turn be impacted by economic, social, political
and technological factors in the environment. The organizational buying process is entirely different from the consumer
buying process. While buying decisions are made relatively easily and quickly by individual customers, organizational
buying involves thorough and deep analysis. Organizations purchase products ranging from highly complex machinery
to small components.

5. CHARACTERISTICS
• Derived Demand
• Geographical Concentration
• Few Buyers And Large Volume
• More Direct Channel Of Distribution
• Rational Buying
• Professional buying
• Complexity

6. FACTORS INFLUENCING
Environmental Factors
Environment factors affect organizational buying behavior. This includes economic, technological, political-
legal, social responsibility and competition.
1. Economic Factors - Economic factors affect organizational buying behavior. This includes level of demand
and economic health. The level of demand includes capacity and desire for buying goods. This is affected
by income distribution and price of product. Prosperity, recession and recovery are included in economic
health. The prosperity condition is economically good condition. Recession is economically bad condition.
2. Technological Factors - Technological factors also affect organizational behavior. This includes level of
technology, pace of technology, technology transfer etc. E-commerce as well as information technology
has got revolutionary change. It has directly affected organizational buying behavior.
3. Political and Legal Factors - Political and legal factors also affect organizational buying process directly.
Political factors include political system, political situation, and political thought, government policies etc.
whereas constitution, laws, rules and regulations etc. are included in legal factors.
4. Social Responsibility - A business organization should consider social responsibility while buying any
goods or services. Indigenous goods should be given preference in buying and interest of society should be
protected. Interest of different pressure group of the society also should be considered while buying goods
or services.
5. Competition - Competition also affects buying behavior. This competition includes pure competition,
monopolistic competition and oligopoly competition.

7. • Organizational Factors
Organizational factors also affect organizational buying behavior. This includes objectives, policies,
procedures, organizational structure and system.
1. Objectives - Buying objective is determined according to organizational goal. Goods should be purchased
according to organizational objective. As goods or services need to be purchased according to
organizational goal, buying is affected by objective.
2. Policies - Purchasing or buying policy also effects organizational buying behavior. Goods should be
purchased according to buying policy of the organization. If the organization has the policy of buying
indigenous goods, the buyer cannot buy foreign goods. If the purchasing policy is silent in this matter,
whichever goods, foreign or indigenous, can be purchased as desired.
3. Procedures - The methods and process adopted by an organization to buy goods or services is called
procedure. Goods or services can be purchased directly through agreement, or through tender,
demanding catalog etc. Any of the method can be adopted to buy goods or services. Whichever
procedure the organization has adopted, the buyer should follow it.
4. Organizational Structure - Organizational structure defines authority and relations which directly affects
buying behavior. In some organizations, goods or services are purchased by direct order of chief executive
while in some other organizations, goods or services are bought through purchase department. So,
buying behavior is affected by organizational structure.
5. System - Purchasing system also directly affects buying behavior. An organization can adopt any one or
more such as centralized system, decentralized system, huge quantity purchase system and others.

8. • Interpersonal Factors
Interpersonal factors also affect buying behavior. This includes authority, status, interest etc.
1. Authority - The personnel whom the organizational structure gives authority to order for purchase, no goods can
be purchased without his order. Buying decision of such authority plays an important role in buying.
2. Status - The persons to purchase goods or services and to give order for purchase may be different in an
organization. As much the behavior of the person issuing purchase order affects behavior of the buyer. If the
status or level of the buyer is high, his buying decision becomes rational and quick. His/her behavior becomes
mature.
3. Interest - Users, influencers, buyers, decider and gate keeper are involved in organizational buying process. Their
interest affects organizational buying process. As their interest becomes different, buying process may be
complicated.
• Personal Factors
Personal factors also affect buying behavior. This includes age of person, education, level of job, personality etc.
1. Age - Age of person also affects selection and priority. Younger persons make buying decision and supplier
selection quicker than older aged persons. Similarly, the younger persons try to find new suppliers whereas older
persons try to give continuation to the same who is supplying. So this also affects buying process.
2. Education - Education makes person able to analyze good or bad. So, an educated person takes buying decision
rationally whereas uneducated person makes buying decision at hit and miss or hunch. Educated person selects goods
or services carefully. So, buyer’s education also affects organizational buying behavior.
3. Job Position - Job position also shows a person’s status. Buyer’s position or status also affects his buying
behavior. Buyer’s status may be low or high.

9. OBJECTIVES
• Improving Employee Behaviour
• Enhances Leadership Skills
• Increases the Motivation of Employees
• Assists in Organisational Change
• Creating a Desirable Workplace Culture

10. SCOPE
• Individual Behavior - As the name itself suggests, this is where an individual is studied from personality,
motivation, interests, to attitudes of an individual who is a part of an organization. Various interaction sessions
and one-to-one are conducted to understand and study the individual and make a perception about them.
• Inter-Individual Behavior - Now, the inter-individual concept is when there is communication happening
among the employees. Inter-individual represent persons with their social group in the workplace, their
subordinates, or their senior employees. It helps understand the leadership styles and leadership qualities of a
person; if a conflict arises, it can be resolved easily, group dynamics.
• Group Behavior - Here the study of the formation of an organization is done. The areas looked into can be the
structure of the organization, effectiveness in the organization, etc. The efforts made by a group to achieve the
objectives or goals of an organization are what group behaviour is all about. The behaviour of everyone who
is a part of the group is taken into consideration.

11. ADVANTAGES
• Saves from Disaster
• Helps in Formulating Right Marketing Strategy
• Segmentation of Market is Helped
• Helps in Development of New Products
• Helps in Product Orientation
• Helps in Reorientation of Packaging
• Helps Consumers to Study their Behavior

12. CONCLUSION
• In conclusion, the behavior shown by an organization while buying goods or services is called organizational
buying behavior. User, influencer, buyer, decider and gate keeper are involved in organizational buying
process. Organizational buying behavior is influenced by marketing stimuli and other stimuli. Generally, these
stimuli influence selection of goods or services, selection of suppliers, buying quantity, terms of delivery,
terms of service and terms of payment.

13. BIBLIOGRAPHY
• https://www.marketing91.com/organizational-buying/
• https://www.businessmanagementideas.com/marketing/organisational-buying/organisational-buying-
introduction-process-situations-and-buying-centre-roles-business-marketing/17632
• https://marketinglord.blogspot.com/2012/05/concept-and-characteristics-of.html?m=1
• https://www.yourarticlelibrary.com/consumer-behaviour/consumer-behaviour-meaning-factor-advantages-
and-disadvantages/64103

14. THANKYOU