Buying Decision

The process that occurs when a

consumer makes another purchase

of the identical goods in the

identical amount under the

identical terms from the

identical supplier. Consumers

that often engage in a straight

re-buy of a product are an

attractive target group for the

marketing efforts of a

manufacturing business.

the decision to buy the brand,

product, etc. that you bought

last time, rather than

considering other brands or

products:

Purchase decisions can be

categorized into straight rebuy

decisions; modified rebuy

decisions; new task purchasing.

Modified Rebuy is a buying

situation in which an

individual or organization

purchase goods that have been

purchased previously but

changes either the supplier or

some other elements of the

previous order. In this the

buyer wants to modify product

specifications, terms, prices,

suppliers.

In this case the “in supplier”

has to protect his account

whereas the “out supplier” sees

it as a better offer and gain

some business. A modified rebuy

is less critical and consumes

less time. A new product

introduction from the earlier

version always creates a

modified rebuy situation.

The best example for this is

3M. This helps them to always

stay ahead in the competition.

Example: - An automobile

company may prefer to use an

updated version of bearings.

For this it will see different

suppliers and thus will get

many options to choose from and

select the best bid.

Straight rebuy

Modified rebuy

New task

Straight rebuy

In a straight rebuy, the buyer

reorders something without any

modifications. Purchase Dept.

normally handles these kinds of

purchase as routine. Its based

on past buying satisfaction,

the buyer simply chooses from

the various suppliers on its

list. "In" suppliers try to

maintain product and...