Buying Situations

Parameters
New Buy Modified Rebuy Straight Rebuy
a) New Product
Category/Low
competition: Price is Price plays a
Price is highly significant
less significant minimal Role as
as price may be the factor,
Price/Negotiations b) Exisiting Product the price points are
customer looks for
Category/High already established
alternate source
Competition: Price with supplier
is highly Signifcant
to get an entry
Volume offtake will
Order Volume offtake will be Volume offtake
be low, as ramp up
Quantities/Volume medium as second source will be high
yet to takeoff
Minimal Role as
Low leadtime. Highly the supply chain is
Delivery Time High lead time. As
Important as delivery may already established
(Serial Production 3 the supply chain is
be the factor, customer and leadtimes are
Leadtime) yet to establish
looks for alternate source experienced by
buyer.
Decision time to
High Very High Low
place order
Complexity. Sellers
Standardized.
Standardization Vs will be Standardized. Sellers will
Commodity
Complexity limited/Niche be more.
product
Product
Bidders will be
No of competing
Low High there. But there
bidders
won't be bidding
Strength of the
Low Medium High
relationship
No of buying
High Very High Low
Influencers
Open P.O; P.O will
Frequency of Limited. Only for Limited. Only for Trail
be released on
Purchases Trail Purpose Purpose
yearly basis
Consumption period
Low Frequency Low Frequency High Frequency
of product
Perceived risk by
High High Low
buyer
Financial impact on
Blind Buy Compromised Buy Best Buy
buying company
Emphasis on QCDR
Seller marketing Solution
parameters; Total Cost of Relationship
communication Providing/Value
Ownership/Competitive Selling
strategies Creation
Selling