Factors That Influence Organizational Buying

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According to Dietrick, C. (2010) in his book, Decision Making: Factors that Influence Decision Making, Heuristics Used, and Decision Outcomes, several factors influence decision making. These factors, including past experience (Juliusson, Karlsson, & Gӓrling, 2005), cognitive biases (Stanovich & West, 2008), age and individual differences (Bruin, Parker, & Fischoff, 2007), belief in personal relevance (Acevedo, & Krueger, 2004), and an escalation of commitment, influence what choices people make. As much as these factors mentioned apply for the individuals purchase decision, a number of them may not apply in the context of an organizational purchase decision. Individual purchase decisions are relatively simplistic, while organizational buying…show more content…
Often decisions will be made on economic criteria. This is because organizational buyers have to justify their decisions to other members of their organization. Many organizational purchases, notably those which involve large sums of money and are new to the company, and especially when it involves the pensions of the staff of the company, usually are made over a long period of time and involve a number of people. The Managing Director, Human Resource Manager, Finance Manager, Payroll department and operatives may influence the decision of which trustee is to manage the pension funds of the staff of the…show more content…
Process: the ‘how’ factor – the pattern of information getting, analysis, evaluation and decision-making which takes place as the purchasing organization moves towards a decision. Content: the ‘what’ factor – the choice of criteria used at different stages of the process and by different members of the decision making unit. Fisher’s breakdown of the organizational buying behavior is more realistic and will be more applicable in this study. His framework allows marketers to have a good understanding of the people that are involved in making decision, how they arrive at the decision and what they look out for in arriving at that decision. Howard and Sheth (1969), identified three types of buying situation: (a) extensive problem-solving; (b) limited problem-solving; and (c) automatic response. Their extensive problem solving concept is true of this research and applicable to employers in Ghana because, the need for the appointment of trustees was new to all employers. Solving this kind of situation with a lot of uncertainty makes it even more expensive and thus requires an extensive search for the right trustee to be appointed. Since the theme of this research is to unearth the ‘what’ factor that informs employer’s choice of corporate trustee, we will agree with his

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