Characteristics of the Product and the Buying Organisation – Sheth Model

In this Sheth talks of the actual buying process and contends that it is affected by:

Product Specific Factors:

  • Time pressure: Group decision will take longer time as compared to individual ones.
  • Perceived risk: When the decision involves risk, more members of the DMU will be involved.
  • Type of purchase: If the type of problem is an extensive problem, then more members of the decision making unit (DMU) will be required unlike a simple repeat purchase, where a single individual can be asked to carry out the decision.

Focus Factor: Strategic Planning for Entrepreneurial CompaniesCompany Specific Factors:

  • Organizational orientation:-Is the firm sales and marketing oriented? Or is it technology dominated one etc., Depending on how the organisation sees itself will determine the internal power balance and influence in the DMU.
  • Organization size: – Depending on the size of the organisation, will determine the group decision-making. If the organisation size is small, it is more likely that a single buyer will possess all the relevant information. But if the organisation is a large one, it is more likely that there will be group decision making.
  • Degree of centralization: – Decentralized organisation involve a lot more people in the decision making than centralized organisations, which have a centralized buying function.

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