Major Types of Buying Situations

There are three key types of buying situations. At one extreme is straight rebuy, which is a quite routine decision. At other extreme is new task, which may call for thorough research. In middle is the modified rebuy that need some research.

In a straight rebuy buyer reorders something with no any modifications. It is typically handled on a routine basis by the purchasing department. Depend on past buying satisfaction, buyer simply chooses from the many suppliers on its list. "In" suppliers try to maintain and service and product quality.

In a modified rebuy, the buyer needs to adjust product specifications, terms, prices or suppliers. Modified rebuy typically involves more decision participants than straight rebuy. The in suppliers can become anxious and sense pressured to put their best foot forward to protect an account. Out suppliers can see modified rebuy situation as opportunity to make a better offer and achieve new business.

A company buying a service or product for first time faces a new-task situation. In such type cases, greater the price or risk, the larger number of decision participants and greater their efforts to collect information will be. The new-task situation is marketer's greatest challenge and opportunity. The marketer not just tries to reach as various key buying influences as possible but also provides information and help.

The buyer makes the fewest decisions in straight rebuy and most in the new-task decision. In new-task situation, the buyer has to decide on product, suppliers, specifications, price limits, order quantities, payment terms, delivery times, and service terms. The order of these decisions varies in each situation, and different decision participants affected each option.