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.

Continue reading here: Systems Buying and Selling

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Readers' Questions

  • Primrose
    What are the business buyers three types of buying situation?
    1 year ago
    1. Straight Re-Buy: A straightforward purchasing situation where the buyer re-purchases the same item(s) from the same supplier.
    2. Modified Re-Buy: A purchasing situation where the buyer re-purchases similar items or services from the same supplier but with some changes.
    3. New Task: A purchasing situation where the buyer purchases something for the first time from a new supplier. This type of buying situation typically requires more research and decision making than the other two types of buying situations.
    • Isembold Labingi
      What is the main definition of straight rebuy?
      1 year ago
    • Straight rebuy is the process of purchasing the same item or items from the same supplier at regular intervals without making any changes in specification or quantity. It is a common purchasing practice used in industries such as manufacturing and retail.
      • esko
        What are the major types of buying situations in the business market?
        1 year ago
        1. Straight Rebuy: This is a situation where the customer has previously purchased a product or service and elects to purchase the same item again.
        2. Modified Rebuy: This is a situation where the customer has previously purchased a product or service but needs to modify the purchase based on a change in the business needs.
        3. New Task: This is a situation where the customer has never purchased a product or service before, and is looking to acquire something new.
        • RUSSELL
          What is a modified rebuy?
          1 year ago
        • A modified rebuy is a type of purchasing decision in which a customer may buy additional products or services, but only if certain conditions are met. This typically happens when the customer has already purchased a similar product or service, and there are differences between the two of them. The differences must be substantial enough that the customer feels the need to purchase an entirely new product or service in order to get the desired results. In this way, modified rebuy decisions can involve an element of negotiation between the customer and the vendor.
          • sofia
            What Are Types Of Buying Situtions?
            1 year ago
          • There are four main types of buying situations:
            1. Straight rebuy: This situation occurs when a buyer reorders a product or service that they have purchased before without any changes or modifications to the order. The decision-making process is usually quick and efficient in a straight rebuy situation.
            2. Modified rebuy: In this situation, the buyer wants to make some modifications or changes to the previous order. It could be due to dissatisfaction with the current supplier, changes in requirements, or the desire to explore new options. The decision-making process is more complex than a straight rebuy but less complex than a new task situation.
            3. New task: This is the most complex type of buying situation. It occurs when a buyer needs to purchase a product or service for the first time or when there is a significant change in requirements. The buyer must gather extensive information, evaluate multiple options, and go through a lengthy decision-making process before making a purchase.
            4. Systems buying: This situation involves purchasing a set of interrelated products or services that work together to fulfill a specific need or requirement. It may involve multiple suppliers or vendors and requires coordination and integration of the different components. Systems buying often occurs in industrial or business-to-business purchases where multiple components need to work together seamlessly.
            • Corinna
              What are the challenges of new task buying situation?
              1 year ago
              1. Limited financial resources: One of the main challenges of any new task buying situation is having limited financial resources. Trying to purchase a new task within a limited budget can cause stress and uncertainty.
              2. Limited knowledge: If you are unfamiliar with the task buying process, you may find it difficult to determine the best course of action. This can lead to making uninformed decisions or even putting yourself at risk of making a bad purchase.
              3. Technical challenges: Depending on the nature of the task, there may be technical challenges associated with setup or installation. This can add time and additional costs to the process.
              4. Compatibility issues: If the task you are buying is not compatible with your existing systems, you may be forced to buy additional equipment or software to make the task work.
              5. Long-term costs: Another challenge when buying a new task is accounting for the long-term costs associated with upkeep, maintenance and replacement parts. These costs can add up over time and can impact your overall budget.
              • EUSTORGIO
                What are the example of straight rebuy buying situation?
                1 year ago
                1. Restocking grocery store shelves with canned goods on a regular basis
                2. Replacing printer cartridges as needed
                3. Refilling office supplies as they run out
                4. Purchasing a new set of tires to replace worn out ones
                5. Replacing light bulbs once they burn out
                6. Replacing ink cartridges in a printer
                7. Replacing components in a computer as they wear out or become obsolete
                8. Ordering new supplies of raw materials to keep production running
                9. Refilling a warehouse with new inventory as it gets sold
                10. Replacing a pair of shoes after the tread wears out