The second set of factors that influence the buying process are related to
the organisation itself:
● The organisation’s orientation: An organisation may be engineering
orientated or marketing orientated. This orientation will, to an extent,
reflect the balance of power within the DMU and have an important
influence on its attitude to a purchase decision. An organisation that
has a dominant engineering orientation will perceive a purchase by
using engineering values.
● Size of the organisation: A small organisation may have only one indi-
vidual responsible for buying. This individual may undertake all the
information searches themselves. Large organisations are likely to
have more individuals involved in purchase decisions.
● Degree of centralisation/decentralisation: A central buying department
would be common in a strongly centralised organisation. A much greater
spread of individuals would be involved in a decentralised company.
● Character of the decisions-making process: Sheth’s model identifies two
types of decisions:
1 Autonomous decisions are taken by an individual and are rela-
tively straightforward.
2 Joint decisions are undertaken by more than one individual. As the
model has already indicated each individual has a unique set of fac-
tors influencing them and therefore some level of conflict is likely.
The manner in which these conflicts are resolved affects the final decision.
The model outlines four approaches to making decisions:
1 Problem solving: This involves gathering information and using a sys-
tematic approach to weighing up the alternative options. A disadvan-
tage of this approach is that it inevitably takes time.
2 Persuasion: Time is taken in order to get everybody to put the organisa-
tional needs and objectives above personal agendas. Again the disad-
vantage is this can slow the decision process down.
3 Bargaining: This is used in order to reach a compromise. Individuals in
the buying centre trade concessions. This may result in a sub-optimal
decision. Individuals may be satisfied but the decision may not be in
the best interest of the organisation as a whole.
4 Politicking: Power and influence are used to coerce individuals into
supporting majority positions within the DMU.
The model would suggest problem solving and persuasion are the most
rationale approaches to decision making. Many practising managers will
be well aware that the bargaining and politicking options are common
practice in many organisations.Situational factors
Finally the model highlights situational variables that are outside the con-
trol of the organisation but influence the DMU. These variables would be
such things as:
● A strike at a key supplier
● A supplier is suddenly taken over by a competitor80 Strategic Marketing: Planning and Control