2. Consumer behavior is irrational, organizational buying is rational. Discuss
The process of buying a product is usually determined by the type of buyer one is dealing with. There are two types of buyers: end user consumers and organizations. The reasons for buying a product are different for both types of buyers. The length of the buying process is also different for both types of buyers. It is important to understand how these types of buyers make a buying decision since it helps create a proper marketing strategy for each. Consumer behavior is usually emotional and in most cases irrational. On the other hand, the process of organizational buying is different and the buying behavior is rational and well-thought.
One of the most important factors that determine buying behavior is the purpose of the purchase. First, consumers buy products for personal or family use. In addition, consumers may also purchase products for use in the household or at their businesses. However, for organizations the purpose of purchasing products is different. First, organizations may buy products for use in the day to day operations. Secondly, organizations buy products for further production or as raw materials in manufacture of other products (Glynn & Woodside, 2012). For example, an organization might purchase television parts and assemble them to come up with televisions. Thirdly, organizations also buy products for sale to end user consumers. Distributors usually buy products from the manufacturers and sell them to end users. In this perspective, organizational buying must be calculated and in line with the business culture of the organization. It is important for businesses to maintain certain values during the buying process hence making the buying behavior rational (Blythe, 2008). On the other hand, consumers are not accountable to anyone for the purchases they make. Consumers do not have to make calculated buying decisions. As long as the product appeals to them, the buying process is easy to complete. Most consumers do not make rational behavioral procedures when making a purchase.
The rationality of consumer vs. organizational buying can also be explained by the length of the buying process. For consumers, the buying process is usually fast and usually ends within minutes (Altman, 2006). On the other hand, the organizational buying process is usually lengthy and takes time to complete. Consumers usually go to a shop, identify the product they want and buy it on the spot. In some cases, there might be some bargaining on the price but the length of the buying process is not largely affected by this. In many cases, consumers engage in impulse buying which is irrational buying behavior. For example, a consumer might enter a clothing store wanting to buy a shirt. While in the store searching for a shirt they like, they find an offer where when one buys a shirt, they get 5% discount on a pair of trousers. Such a consumer is highly likely to take this offer...