In this an understanding of the organizational buying process is essential for the development of industrial marketing strategy. In making decisions, purchasing managers must coordinate with numerous people with diverse organizational responsibility who applies different criteria to purchasing decision. To be effective and efficient, one must address a number of key questions.

• How does an organisation buy?
• Who are the key participants that take the buying decisions in an organisation?
• What factors influence the buying behavior of an organisation?

The paper intends to address that the question must be considered and answered. The purpose of the study is identify the key factors that influences the buying decision of the raw material and to gather useful managerial data on raw material buying practice of an manufacturing organisation. For this research we took the case of Siemens company to identify the Decision Making Unit of an organizations buying decision process. In order to achieve the set objective of this study, the researcher has collected primary data from the company Siemens and hypothesis was subjected to investigation.

Ho: Raw material purchasing decisions by manufacturing organizations are not determined by policy makers, deciders, technologists, users, buyer (purchaser), influencers and gate keepers & are not affected by internal (organizational, buying center, personal variable) & external factors (environmental variables).

H1: Raw material purchasing decisions by manufacturing organizations are determined by policy makers, deciders, technologists, users, buyer (purchasers), influencers and gate keepers & are affected by internal (organizational, buying center, personal variable) & external factors (environmental variables).

This study is significant because the researcher, dealers, experts, individual, organization and professionals have indicated that a lot of benefit can be gained from proper understanding the organization buying behavior. These benefits include increase in income; sales volume and profitability of the organization also increase in production and improving the standard of living of the individual.

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Purpose of the study

The purpose of the study is to identify Organization Buying Behavior and how internal and external factors affects the purchasing of raw material and to identify the decision making unit that influences the buying decision of the manufacturing organization.

Significance of the study

This research introduces the basic theory of organization buying, an understanding of how the organization makes effective decision in purchasing, and selecting the best supplier it also investigates risk and uncertainty (external factors) associated in purchasing and the key participants that influence the buying process. This study is significant because researchers, experts, merchants, individuals, organizations and professional bodies have demonstrated that a lot of benefit can be gained from proper understanding of buying behavior of the organisation. These benefits include increase in revenues, sales volume and profitability to the organisation, increase in output to the country as well as improved standard of living to the individual.

Research Design

A Hypothetical Model is proposed for Organizational Buying Behavior: Purchasing raw material by Organizations

Using Webster and Wind’s of organizational buying behavior as well as the knowledge and data gained from the review existing literature, a hypothetical model of organization buying behavior is proposed for this research.

The following assumptions are made in designing the model as follows.

It is presumed that the organizational buying process is a joint decision making carried by individuals, by interacting with other people in the organisation. The organization, in turn, is influenced by a variety of forces in its environment. Therefore, there are three classes of variables determining organizational buying behavior.

The model assumed that the organizational buying behavior is a complex process, rather than a single, instantaneous act, and involves many persons both inside and outside the buying organization, multiple goals as well as potentially conflicting criteria. The process often takes place over an extended period of time, and it requires information from many sources. It also involves many inter-organizational relationships.

Literature review

A lot has been written on organizational buying behavior particularly in the 1960’s and 1970’s when research in this area was very intense. This part of the thesis is devoted to a review of this literature. The aim here is not to include a complete list of all that has been written but rather includes mainly those sources that have been useful for this study.

A decision making unit (DMU) is an individual – a group of individuals who are participants in a decision making process, who share a common goal or goals which the decision will hopefully help them to achieve and who share the risk arising from the decision. Hill and Hillier (1977) say “The DMU consists of the individuals who actively participate in the decision when