Observation

Candidates failed to explain organizational buying behaviour in question 6(a). In question 6(b), most candidates could not distinguish between a consumer from an organization in terms of buying decision process.

The responses expected from candidates are:

6(a)      Organizational buying behaviours refers to the activities involved in the process
of purchasing raw materials for further production/business use or resale.

                                                            OR

Organizational buying behaviour is a rational decision making process of purchasing goods and services by institutions for their use/further production/resale.

    
(b)       Differences between Consumer buying and Organizational buying behaviour

(i)         There are few participants in consumer buying behaviour while there are many participants in organizational buying behaviour.

(ii)        Consumer buying involves purchases in small quantities while organizational buying involves purchases in large quantities.

(iii)       Consumer buying is for personal consumption while organizational buying is for further production of other goods.                

(iv)       Consumer buying behaviour is informal/simple while the organisational buying behaviour is formal/complex.

(v)        Consumer buying behaviour entails short term relationship while organizational buying behaviour entails long term relationship.

(vi)       There is no reciprocity in consumer buying behaviour while there is reciprocity in  organizations buying behaviour.

(vii)      Consumers buy from middlemen while organizations buy from manufactures.

(viii)     Consumers buying behaviour does not involve professionals while organizational buying behaviour involves professionals.

(ix)       Consumer buying behaviour is on emotional/impulse basis while organizational buying behaviour is on rational basis.

(x)        Consumers buy variety of goods to meet their personal needs while organizations buy limited goods for business use.