Main Types of Buying Situation

There are three main types of buying situation.8 At one extreme is the straight rebuy, which is a fairly routine decision. At die other extreme is the new Cask, which may call for thorough research. In the middle is the modified rebuy, which requires some research, (For examples, see Figure 7.3.)

STRAIGHT REBUY. In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. Based on past buying satisfaction, the buyer simply chooses from the various suppliers on its list. 'In' suppliers try to maintain product and service quality. They often propose automatic reordering systems so that the purchase agent will save reordering time. The 'out' suppliers try to offer something new or exploit dissatisfaction so that the buyer will consider them, 'Out' suppliers try to get their foot in the door with a small order and then enlarge their purchase share over time.

MODIFIED REBUY. In a modified rebuy, the buyer wants to modify product specifications, prices, terms or suppliers. The modified rebuy usually involves more decision participants than the straight rebuy. The 'in' suppliers may become nervous and feel pressured to put their best foot forward to protect an account. 'Out' suppliers may see the modified rebuy situation as an opportunity to make a better otter and gain new business.

NEW TASK, A company buying a product or service for the first time faces a new task situation. In such cases, the greater the cost or risk, the larger will be the number of decision participants and the greater their efforts to collect information. The new-task situation is the marketer's greatest opportunity and challenge.

straight rebuy A business buying situation in which the buyer routinely reorders something without any modifications.

modified rebuy A business buying situation in which the buyer wan ts co modify product specifications, prices, terms or suppliers.

newtask

A business buying situation in which the buyer purchases a product or service for the first time.

The marketer not only tries to reach as many key buying influences as possible, but also provides help and information.

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Responses

  • EUSTORGIO
    What are the example of straight rebuy buying situation?
    2 years ago
  • Corinna
    What are the challenges of new task buying situation?
    1 year ago

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