Business Buying Behavior - Assignment Example

• Straight Rebuy:

In this situation, the buyer re-orders the products without any alterations. This kind of situation is handled by the procurement officers on the daily basis.

• Modified Rebuy

In this situation, the buyer re-orders the products but with certain modifications in price, terms, and so on. This process involves decision-making participants.

• New Task Situation

This refers to the industrial buying situation in which the product is bought for the first time.

The participants of the buying behavior include the following:

• Approvers
• Deciders
• Gatekeepers
• Influencers
• Initiators
• Users

The factors influencing the business buying behavior are environmental factors such as supply conditions, regulation policies, competitive environment, culture, and customs. Organizational factors such as policies, procedures, and structure also influence buying behavior. Other factors that influence buying behavior are interpersonal (such as status, persuasiveness) and individual factors (such as age, attitude, income, and status).

EXAMPLE

Considering an example of the straight rebuy situation in the business buying situations, it is seen that most companies re-purchase programs built into an automated ordering system. It is useful for both supplier and purchaser because the routine task is carried out by the system. The system initiates electronic orders in case the inventory falls below the target level. In the case of the seller, it is easier to deliver the goods since the purchaser does not evaluate other products. On the other hand, the drawback of this system is that the competitive suppliers have to persuade aggressive marketing in order to capture the attention of the purchasers to buy their products.