Buyers have various levels of experience and information to use in purchasing products and services. The same purchase in two different organizations may distinguish purchasing strategies if the buying situation is different. Therefore attention must be concentrated on buying situation.
1. New task: It is the business buying situation in which the buyer purchases the product or services for the first time. Here the buyers have lack of experience and product knowledge to make comparison of alternative products and suppliers. In such cases, the greater the cost of risk, the larger the number of decision participants and the greater their efforts to collect information will be.
2. Straight re-buy: It is the business buying situation in which the buyer routinely 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. Suppliers try to maintain product and service quality. The business buyer makes the fewer decisions in straight re-buy situation.
3. Modified re-buy: The buyer wants to modify product specifications, prices, terms, or suppliers in this buying situation. The modified re-buy usually involves more decision participants than does the straight re-buy. Organizational decision makers enter into a modified re-buy situation when they feel that significant benefits such as quality improvements or cost reduction may be derived from reevaluating alternatives.
