B2B Marketing

Assignment

Organisation Buying Behaviour Models

Submitted by:

Group 3

PGP08133 Abhishek Khanra

PGP08152 Gaurav Pandey

PGP08163 Nimish Joshi

PGP08164 Nitin Wannewar

PGP08096 Mohan S
Webster and Wind Model
In 1992, Webster and Wind developed a model which sketches four classes of factors that govern
industrial buying behavior. The factors are individual, social, organizational and environmental
factors. They further broadly classified these factors as Task and Non-Task factors. Task factors
or economic factor models vision the organizational buyer as an economic man (a rational
buyer). Non-task models highlight the role of personal motive in the buying process - they
introduce the human elements into organised industrial buying.

The Hobbesian Model

Also called factors of organization model, T. Hobbes designed it mainly for the study of
organizational consumer behaviour faced with acts of purchasing goods for companies or
institutions. The model is grounded on the notion that, in essence, consumer behaviour is
determined by the predominance of rational reasons related to the interests of the organization,
and of personal interest. This model hypothesizes that the purchasing officer’s interest to do his
best for the organization is hindered by his interest to do the best for himself that at any given
time the organisational buyer pursues both personal and group goals. The Hobbesian model
clearly explains why an organizational buyer may patronise a vendor offering a higher price or
slightly less quality rather than from a vendor offering a lower price for the same quality. The
buyer has his private aims, yet he tries to do a satisfactory job for his corporation. The best “mix”
of the two is not a fixed quantity, it varies with the nature of the product, the type of organisation
and the relative strength of the two drives in the particular buyer.

Comparison with Webster and Wind Model

While Webster and Wind Model categories separately rational and personal factors, Hobbesian
Model combines the above two elements present in consumer buying behaviour and presents the
juxtaposition between the two, striving for the “best mix.”

The Robinson, Faris and Wind Model

The BuyGrid framework, as it is popularly known, was introduced by Robinson, Faris and Wind
in 1967. The BuyGrid framework comprises a matrix of buyphases and buyclasses. Certain
buyphases exert disproportionately forces over certain buyclasses and are hence very important
for those buyclasses. The buyphases are:

1. Recognition of the need of the organisation

2. Determining the properties and quantity of the product required
3. Description of the properties and quantity of the product required
4. Examine and certify the potential sources
5. Acquire and analyse the available proposals
 6. Evaluate proposals of the suppliers and select the most appropriate ones from them
7. Select an order routine
8. Take feedback into consideration and change accordingly
The buyclasses according to the model are as follows:

 New Tasks: These are the first-time buyers who evaluate all alternatives. Buying phases
1,2 and 3 are the most critical for this buyclass.
 Modified Rebuy: These are buyers who want to replace the product that they use with a
better one. Buyphases 3 and 4 are the most critical for this buyclass.
 Straight Rebuy: The buyer, in this case, orders the same product that he/she has been
using and does not want any modifications. Buyphases 3,4 and 5 are the most critical.

Comparison with the Webster and Wind Model

Webster and Wind Model Robinson, Faris and Wind Model

 Concentrates on four sets of variables:
Organisation, Environment, Buying Centre
and Individual
 It is a very comprehensive model and is
thus generally applicable in all
circumstances
 The model is weak while explaining the
specific influence of the key variables
 Considers individual choice as a parameter
that affects the buying behaviour
 Concentrates on two sets of variables:
BuyClasses and BuyPhases
 Is not as comprehensive as the Webster
and Wind model and hence applicability is
low
 This model explains the influence of all
variables, that it mentions, precisely
 Considers the entire buying process as an
accumulation of individual decisions

The Nelson Box Model

This model Consist on two assumptions:

1. The decision at different levels of the organization neither always involve the same
individual.
2. The decisions taken at one level will form the basis for all subsequent decisions.

Application of This model in Management Decision Making

In this model Decision making is systematic and not automatic. Under normal condition decision
making requires a thoughtful process to ensure attainment of decision making objectives.
Consumers buying behavior are influenced by many factors, including, among others;
availability of funds, price, quality of product, advertising promotional appeals, personality traits,
and other environmental influences.
Comparison with the Webster and Wind Model

Neilson Model considers different levels at which decisions are made and takes in account the
type of work and people at all those levels. Whereas, Webster and Wind model doesn’t consider
this and take the organization decision making as a whole, introducing human element into it.

Howard Sheth model

The Howard Sheth model of consumer behaviour, introduced by John Howard and Jagadish
Sheth, the model extensively talks on the customer behaviour and the factors that affect the
output when input as a stimulus is passed into the system consisting of variables that determine
the decision making. The entire process has variables affecting perceptions and learning; these
variable are hypothetical since they cannot be measured inside the process.

The model suggests three type of customers:

1. Extensive problem solving: Where a customer does not have any information on the
market or business or brand with whom he is dealing and prefers to seek out information
to know more about the market situations
2. Limited problem solving: The customer has a little knowledge of the market and partial
knowledge of what is required by them, the comparison is sought to make a purchase.
3. Habitual response behaviour: The customer has complete knowledge of the market and
also differentiates between various market players and also take an informed decision.

The model strives on four components:

1. Input – where available offers are entered

2. Perceptual and learning constructs – here the offerings are evaluated by various factors
such as environment and cost
3. Output – the decision-making process is complete with a purchase decision.
4. Exogenous variables – not directly part of the decision-making process, but may affect
indirectly such as situation and environment

Comparison with the Webster and Wind Model

The main difference between Webster-and-Wind-Model (WAW) and Howard Sheth(SH) model
is that WAW model has different decision-making steps whereas SH does not. The WAW model
identifies six different members involving in a decision making, whereas SH considers other than
members some more hypothetical factors. SH gives more importance to the output decision
whereas WAW focusses on the environment of the members affecting the decision.
Annexure:

Webster and Wind Model