Difference between Consumer Buying Behavior
and Organizational Buying Behavior
The differences between consumer buying behavior and organizational buying behavior can
be listed as follows:
Bases Consumer Buying Behavior Organizational Buying Behavior
The individual consumers buy goods
The organizations buy goods and
and services for ultimate use or
services for their business needs. The
Purpose of satisfy their needs. The buying
buying purpose of them is to earn
Buying purpose of such consumers is not to
profit by using and reselling the
earn profit by reselling the goods and
goods and services.
services.
Organizational buying is done in large
quantities. There are several reasons
why organizations must buy the
Although consumers buy various goods they need in bulk. In the first
kinds of goods, the quantity of goods place, they use large quantities of
Quantity remains small. They buy only the each item and must maintain
necessary quantity of goods, which inventories at a level high enough that
they need for regular use. they will not run out of stock.
Secondly, it is cheaper and more
efficient to make large-volume
purchases.
Organizational purchasing is a
Consumer buying takes decision by
rational process because the
consumers themselves. Sometimes
purchasing behavior of organizations
Purchase they can consult with family
is guided by objective factors having
Decision members and friends. They need not
to do with production and
fulfill any formality like
distribution. It takes long time than
organizational buying.
consumer buying.
Organizational purchase criteria are
specifically defined. Organizational
Most of the consumers may not have
buyers usually have fewer brands to
adequate knowledge and information
choose from than do individuals, and
Market about market situation, available
their purchases must be evaluated on
Knowledge goods and services, etc. The educated
the basis of criteria that are specific to
customers may be aware and have
the overall needs of the organization.
knowledge about market and goods.
The organizational buyers have full
knowledge of market and suppliers.
Consumers buy many goods to use to Organizational buyers buy limited
Types of Goods
satisfy personal or family needs. goods to use to conduct business.
Effect Consumer buying behavior is effected Many individuals are involved in the
by age, occupation, income level, buying process. Within large
education, gender etc. of consumers. organizations, rarely is one individual
Bases Consumer Buying Behavior Organizational Buying Behavior
solely responsible for the purchase of
products for the purchase of products
or services. Instead, many individuals
and departments may be involved
and departments may be involved in
the buying process.
The consumer buying process is very
simple. No need to fulfill any
Buyers and sellers in the
Buying Process formality. There is also no need to
organizational market must maint
maintain extensive contact with
sellers.
Difference between Consumer Buying and Organizational
buying Behaviour
Consumer Buying Behaviour Organizational Buying Behaviour
1. Large volume of buyers but small 1. Small volume of buyers but large purchase
purchase volume. volume.
2. Emotional buying decision. 2. Rational buying decision.
3. Less priority to documentation
3. High priority to documentation system.
system.
4. No need to collect proposal 4. Necessary to collect proposal.
5. Generally cash purchase. 5. Generally credit proposal.
6. Generally purchase for personal and
6. Generally for organizational use.
family use.
7. Generally purchase from the retailer. 7. Purchase from wholesalers and companies.
8. Elastic demand. 8. Inelastic demand.
9. Generally purchase decision by a
9. Purchase by committee and group decision.
single.
10. Behaviour can be influenced by 10. Behaviour can be influenced by personnel
sales. selling.
11. Low involvement purchase 11. High involvement purchase.
12. Decision is affected by person & 12. Decision is affected by organizational rules,
family activities. regulations, systems, etc
Steps in the consumer decision process
Generally speaking, the consumer decision-making process involves
five basic steps.
1. Problem recognition
The first step of the consumer decision-making process is recognizing
the need for a service or product. Need recognition, whether
prompted internally or externally, results in the same response: a want.
Once consumers recognize a want, they need to gather information to
understand how they can fulfill that want, which leads to step two.
But how can you influence consumers at this stage? Since internal
stimulus comes from within and includes basic impulses like hunger or
a change in lifestyle, focus your sales and marketing efforts on external
stimulus.
Develop a comprehensive brand campaign to build brand awareness
and recognition––you want consumers to know you and trust you.
Most importantly, you want them to feel like they have a problem only
you can solve.
Example: Winter is coming. This particular customer has several light
jackets, but she’ll need a heavy-duty winter coat if she’s going to survive
the snow and lower temperatures.
2. Information search
Content Map With Funnel (B2C) Example (Click on image to modify online)
When researching their options, consumers again rely on internal and
external factors, as well as past interactions with a product or brand,
both positive and negative. In the information stage, they may browse
through options at a physical location or consult online resources,
such as Google or customer reviews.
Your job as a brand is to give the potential customer access to the
information they want, with the hopes that they decide to purchase
your product or service. Create a funnel and plan out the types of
content that people will need. Present yourself as a trustworthy source
of knowledge and information.
Another important strategy is word of mouth—since consumers trust
each other more than they do businesses, make sure to include
consumer-generated content, like customer reviews or video
testimonials, on your website.
Example: The customer searches “women’s winter coats” on Google to
see what options are out there. When she sees someone with a cute
coat, she asks them where they bought it and what they think of that
brand.
3. Alternatives evaluation
At this point in the consumer decision-making process, prospective
buyers have developed criteria for what they want in a product. Now
they weigh their prospective choices against comparable alternatives.
Alternatives may present themselves in the form of lower prices,
additional product benefits, product availability, or something as
personal as color or style options. Your marketing material should be
geared towards convincing consumers that your product is superior to
other alternatives. Be ready to overcome objections—e.g., in sales
calls, know your competitors so you can answer questions and
compare benefits.
Example: The customer compares a few brands that she likes. She knows
that she wants a brightly colored coat that will complement the rest of
her wardrobe, and though she would rather spend less money, she also
wants to find a coat made from sustainable materials.
4. Purchase decision
This is the moment the consumer has been waiting for: the purchase.
Once they have gathered all the facts, including feedback from
previous customers, consumers should arrive at a logical conclusion
on the product or service to purchase.
If you’ve done your job correctly, the consumer will recognize that
your product is the best option and decide to purchase it.
Example: The customer finds a pink winter coat that’s on sale for 20%
off. After confirming that the brand uses sustainable materials and
asking friends for their feedback, she orders the coat online.
5. Post-purchase evaluation
This part of the consumer decision-making process involves reflection
from both the consumer and the seller. As a seller, you should try to
gauge the following:
Did the purchase meet the need the consumer identified?
Is the customer happy with the purchase?
How can you continue to engage with this customer?
Remember, it’s your job to ensure your customer continues to have a
positive experience with your product. Post-purchase engagement
could include follow-up emails, discount coupons, and newsletters to
entice the customer to make an additional purchase. You want to gain
life-long customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep custo
