Industrial goods which are the objects of exchange in the industrial market are composed of goods that are consumed by organization in the production of consumer's goods or other industrial goods or in conducting an enterprise. The purchase of industrial goods like installations, operating supplies and raw materials is likely to be negotiated by professionals whose business is to buy by purchasing agents acting on behalf of certain companies.
They negotiate and execute the fulfillment of the companies' needs. This activity of purchasing agents embracecs obtaining the best price and terms, an acceptable delivery promise, vendors' technical assistance where useful, a reliable and dependable source of supply, specified product quality and specifications, and flexibility to meet the company's requirements.
Since the purchase of industrial goods enters into and affects the cost structure of the firm that makes it and influences the firm's product and operations for that very reason, each purchase is likely to be scrutinized with care by some executive other than one negotiating the contract.
In the background of every purchase, the profit which may be made from article or its effect on operating efficiency and not the personal satisfaction that may be gained from its possession looms as the major motivating consideration.