Page 96 - DMGT408DMGT203_Marketing Management

Unit 4: Business Markets and Business Buyer Behaviour

These values have a substantial influence on the concerned organisation’s culture. Some Notes
organisations are more formal and some others may be more open and informal.

Example: It is said that IBM is formal and takes itself seriously while Apple is less
formal, creative and encourages a more open corporate culture.

These differences influence the buying behaviour and supplier firms must understand these
differences to best serve the concerned organisation’s needs. Some common business values on
which organisations differ are:
1. Risk-taking is admired and rewarded.
2. Competition is more important than cooperation.
3. Hard work first, leisure comes second.

4. Individual efforts take priority over collective efforts.
5. Any problem can be solved.
6. Active decision-making is essential.

7. Change is positive and actively sought.
8. Performance is more important than rank or status.
Innovative organisations are more likely to have these values as they reward individual
contributions, view problems as opportunities and welcome change. These values often underlie
many innovative organisations such as 3M and Apple computers etc., but are unimaginable in
governmental organisations in any country, including India. A bureaucratic set up is more
likely to be comfortable in maintaining status quo and move at its own pace in all respects.
Organisations and individuals within the organisation both have values. The more consistent
the value systems of individuals and the organisation, the smoother the decision-making process
and the implementation of those decisions are likely to be.

It is important to distinguish between individual values/objectives and organisational values/
objectives. Individual approach to buying decisions on behalf of the organisation may be
primarily based only on organisational values/objectives, the decision may be solely based on
the values/objectives of the individual, or the decision may be based on a compromise of the
two. There can be situations when individual values/objectives and organisational values/
objectives may be in conflict and this is likely to influence purchase behaviour. Marketers
selling to organisational buyers must recognise such situations and how the conflict can possibly
be resolved.

Perception formation process in organisations is complex. An organisation passes through the
stages of exposure, attention and interpretation. A buyer organisation develops certain images
of seller organisations which are based on products, people and activities of the seller
organisation. Such images of organisations, once formed, are difficult to change and buyer
organisations base their decisions on images or memories that they have formed. S. M. Mudambi,
P. Doyle and V. Vong note that it is important for a supplier organisation to develop a sound
communications strategy to build and reinforce a desired corporate image or brand position.

Business buyers prefer to do business with supplier organisations that they know, like and trust.
Sales personnel are the key people who most often help develop relationships between members
of the organisations involved.
Learning in organisations takes place through experience and perceptions. Buyer organisations’
positive experiences with supplier organisations are rewarding and are likely to be repeated.
Effective purchase processes and procedures tend to become rules and policies of the concerned

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