Understanding Buyer Behavior: Domestic and Organizational Buyers for Cadbury Chocolate

In this document we will discuss about  Domestic and Organizational Buyers for Cadbury Chocolate and below are the summary points of this document:- The paper focuses on understanding the buyer behavior of domestic and organizational buyers when purchasing Cadbury chocolate. Cadbury utilizes customer research, segmentation, and feedback processes to analyze buyer behavior and create consistent product demand. The buyer behavior model highlights the influence of marketing stimuli, buyer characteristics, and decision-making processes on purchasing behavior.

RUNNING HEAD: Marketing & Management
Marketing & Management
[Type the document subtitle]
Laptop04011
[Pick the date]

Marketing & Management 1
“Domestic Buyer and Organizational Buyer’s Behaviour for Purchasing Cadbury Chocolate
Product”
Introduction
The purpose of this paper is to enlighten the reader about the domestic buyer and organizational
buyer’s behaviour for the purchase of Cadbury chocolate in the market. It also evaluates
information about the difference between organizational and domestic buyer. With the changing
environmental conditions, it has become important for the companies to particularly understand
the buyer behaviour so that they can sustain in the external market accordingly. If an
organization fails to analyse the customer’s expectation from the product then the company will
subsequently face loss because of not meeting the expectancy.
Domestic and Organizational Buyer’s Behaviour
In case of FMCG products like chocolate, it is important for companies to understand buyer’s
behaviour for the product. Considering the example of Chocolate manufacturing company
Cadbury, although the company has somehow managed to maintain position in the market but it
is important for them to analyse the consumer behaviour for consistent demand of the product in
the target market (Rani, 2014).
It should be noted that the company collects information from the customer research and
segmentation process of marketing that helps them in creating product demand. Further, the
company also initiates feedback process to attain information about the satisfaction level of the
customers present in the market. Such information helps Cadbury in attaining information about
the factors that affect the buying behaviour of the consumer in the market. Buyer Behaviour
(Stimulus and Response) Model is a well developed and tested framework that helps in analysing
the consumer decision making process for purchasing the chocolates from Cadbury (Torrico, et.
al., 2018). Further, below mentioned is the buyer’s behaviour model explained:

Marketing & Management 2
From the above model, it can be clearly seen that marketing and other stimuli comes under the
black box of customer, this black box further produces certain responses as well. The external
environmental characteristics make the buyer think of their purchase initiated decision in the
market. Further, the characteristics of buyer also influence how they will perceive stimuli;
decision-making process determines what buying behavior is undertaken by them (Siamagka, &
Balabanis, 2015). The characteristics of buyer affects their purchase decision, these
characteristics include psychological, social, personal and culture influences. Further, it should
be noted that it is important for Cadbury to understand the buyer’s behavior model so as to create
such environment and motivate the buyer to initiate the purchase decision for the product in the
target market (Schütte, & Ciarlante, 2016).
Further, an organizational buyer is a buyer who is a part of management of the organization and
purchase products from their own company. For instance, a person who purchases cholcolates
from the company Cadbury for selling it in the other markets is called as an organizational buyer.
These type of buyers are considerable more knowledgeable than the domestic buyers present in
The Environment
Buyer’s Black Box
Buyer’s
Characteristics
Buyer’s Decision
making process
Buyer’s Response
 Attitude and preferences of
buyer
 Relationship between the
brand and company
 Purchase behaviour of buyer:
what the buyers want to buy,
when, how much and where.
Marketing
Stimuli Other
 Product
 Price
 Place
 Promotion
 Economic
 Technologi
cal
 Social
 Environmen
tal

Marketing & Management 3
the market (Wind, Thomas, & Sheth, 2014). Further, below mentioned is the visual
representation of the organizational buyer’s bhaviour model:
The above mentioned buyer’s behaviour model clearly explains the factors that affect the
decision making process of an organizational buyer. The organizational buyer focus on various
forces like supply chain of the product, payment generation ways, political and environmental
factors of the country. The basic difference between industrial buyer and domestic buyer is that
the industrial buyer purchases the goods in bulk where as domestic buyer purchases it for
household use. The buying behaviour of an organizational buyer varies on many factors that are
not similar to that of domestic consumer. For instance, in B2B marketing the organizational
buyer looks for a reasonable price offered by manufacturer on which they can purchase the stock
Personal
Characteristics
Age, gender, income
etc.
Social Characteristics
Family, social need etc.
Decision making process
Stimuli
Price
Quality
Promotion
Product
Decision Making
To buy or not to buy
How to buy?
Technology
Mobile, EC, social
media etc.
Logistics
Payment, delivery etc.

Marketing & Management 4
from them whereas in case of consumers, they are offered the products mainly at fixed rate only
(Saleh, Ali, & Julian, 2014).
Relationship of the buyer with the Cadbury also plays an important in affecting the
organizational buyer’s behaviour whereas in case of domestic consumer, they do not hold any fix
relationship with the management of the company. Regulatory changes, corporate laws and
conflicts in the organization also affect the buying behaviour or organizational buyer (Wilson,
2000). The manufacturers are also majorly concerned about the organizational buyer because
they give order in bulk whereas case of domestic consumers, the purchase order quantity and
amount is less so the company is considerable less affected by their decision. Further, an
organizational buyer’s decision is more complex because have to look at their own
characteristics as well as organizational characteristics as well.
Conclusion
Thus, in the limelight of above mentioned events it should be noted that the buying decision for
an organizational buyer is more difficult than a domestic buyer. As the organizational buyer have
to look after their own as well as manufacturer’s behaviour that increases difficulty for them to
make decision.

Marketing & Management 5
References
Rani, P. (2014). Factors influencing consumer behaviour. International journal of current
research and academic review, 2(9), 52-61.
Saleh, M. A., Ali, M. Y., & Julian, C. C. (2014). International buyer behaviour–commitment
relationship: An investigation of the empirical link in importing. International Business
Review, 23(2), 329-342.
Schütte, H., & Ciarlante, D. (2016). Consumer behaviour in Asia. Springer.
Siamagka, N. T., & Balabanis, G. (2015). Revisiting consumer ethnocentrism: review,
reconceptualization, and empirical testing. Journal of International Marketing, 23(3), 66-86.
Torrico, D. D., Fuentes, S., Viejo, C. G., Ashman, H., Gunaratne, N. M., Gunaratne, T. M., &
Dunshea, F. R. (2018). Images and chocolate stimuli affect physiological and affective
responses of consumers: A cross-cultural study. Food Quality and Preference, 65, 60-71.
Wilson, D.F., 2000. Why divide consumer and organizational buyer behaviour?. European
Journal of Marketing, 34(7), pp.780-796.
Wind, Y., Thomas, R. J., & Sheth, J. N. (2014). Organizational buying behavior. SAGE
Publications.