First, while the Howard-Sheth model is more general and probably more useful in consumer behavior, the model described in this article is limited to organizational buying alone.
The most common outcome is to allow a single party to decide autonomously in this specific situation in return for some favor or promise of reciprocity in future decisions.
Demand Perhaps the main driver of industrial buying is demand. Such methods of conflict resolution are common in industrial buying decisions.
These individuals are identified in the model as purchasing agents, engineers, and users, respectively. Proposal must include all specification such as price, delivery period, charges and taxes.
Cost-plus contract: Cost-plus contracts are used in situations where the work cannot be specified adequately, or when a fixed price constitutes too big a risk for both the supplier and the buyer.
These variables must be explained and operationally defined if they are to fully represent the psychological world of the organizational buyers. These exogenous factors will not be necessary if the objective of a study is to describe the process of buying behavior for a specific product or service.
Since the industry has got experience, the solution becomes routine. Finally, there are fewer variables in this model than in the Howard-Sheth model of buyer behavior.