Click on Image to Enlarge – Model of Industrial Behaviour

This model concentrates on the purchasing process and highlights the importance of four main factors:

(a) The expectations of the individuals making up the decision making unit

According to Sheth, every person in the DMU brings with them, their unique set of attitudes and orientations. Their expectations will be conditioned by the individual background

(b) The characteristics of both the product and the organisation

In this Sheth talks of the actual buying process

(c) The nature of the decision making process

Sheth has differentiated between autonomous decisions and those taken jointly by the DMU. When a decision is taken autonomously, it is usually (relatively) straightforward. However, when a group is involved in decision-making, conflict is likely to arise because of the different goals and orientations with the people within the group.

(d) The situation variables

Here Sheth has referred to unforeseen factors, those that fall outside the control of the decision-making unit (DMU) and could affect the purchasing organisation or the suppliers.