51)What are various buying situations that would affect organisational buying process?

Compare across
with a tabulation.

Ans) In general, there are three major types of buying situations.

• The new task is a business buying situation in which the buyer purchases a product or service for the
first time.

• The modified rebuy is defined as a business buying situation in which the buyer wants to modify
product specifications, prices, terms, or suppliers.

• Straight rebuy is a buying situation in which the buyer routinely reorders something without any
modifications.

52) Who are ‘in’ suppliers and ‘out’ suppliers? Illustrate with 2 examples.

Ans) In-Suppliers are suppliers who are already well known to an organisation and from whom they will
purchase with confidence.

Out-Suppliers are suppliers with whom the buying organisation has not had dealings previously and
therefore considers risky.

53) What is a new task? What kind of problem solving is done during this stage? Why?

New task purchase is the one purchase decision that has not been done previously by the business as they
didnot have the need for a new product / task. The new purchase is different from re-purchase as a new
purchase will require a lot of evaluation from the buyer both for the product they intend to purchase and
the vendor that the want to purchase from. New task purchase are usually done by a company when a
need is recognized within the organization. This need may come internally from the firm or may have
come from externally (e.g. Clients).

After the need is recognized the company tries to evaluate several products that can satisfy this need and
also looks for consultants/Vendors that can provide solutions for the need. During this process a company
will look at several vendors and evaluate them for their capabilities to serve the product/service. After the
initial qualification check the company asks all the eligible suppliers/Vendors to submit their bids (also
called the Tendering process).

After evaluation of the Bids the firm may decide to purchase the Product/service from any of the Vendor
which suits its needs best. Many companies usually go for the lowest price bids when there is no
difference in the product of different supplier and the purchase decision is made.

After the purchase decision the companies usually re-evaluate their purchases and then decide about the
future purchases of similar product.
54) What is a straight rebuy? What kind of problem solving is done during this stage? Why?

In a straight rebuy, the suppliers make an effort to maintain product and service quality and automate
reordering systems to save time. For a supplier to break into this system and capture more market, he
has to offer something new or exploit dissatisfaction with a current supplier. He can get a small order and
then enlarge their purchase share over time.

Example: an example for straight rebuy would be the purchase of office supplies or bulk chemicals. The
order quantity and specifications are routine, and the purchase is made from the same competent
supplier at regular intervals, without any decision making process.

55) What is a modified rebuy? What kind of problem solving is done during this stage? Why?

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.

When is strategic new task decisions and judgemental new task decisions made? Explain with examples.

How will a B2B buyer choose his supplier under new task buying situation? As a B2B marketer, what
strategy would you adopt to get a new task buy deal?

What are the types of straight rebuy? How do they differ? Give examples.

How will a B2B buyer choose his supplier under straight rebuy situation? Being an ‘out’ supplier, what
strategy would you adopt to get a straight rebuy deal? Being an ‘in’ supplier, what strategy are you
supposed to adopt to maintain the deal?

What are the types of modified rebuy? How do they differ? Give examples.
How will a B2B buyer choose his supplier under straight rebuy situation? Being an ‘out’ supplier, what
strategy would you adopt to get a straight rebuy deal? Being an ‘in’ supplier, what strategy are you
supposed to adopt to maintain the deal?

What is total cost of ownership (TCO)? How would affect a business marketer and a business customer?
Explain with example.

Explain how the way of doing business in B2B market has changed with the emergence of artificial
intelligence (AI)?

What are reverse auctions? When is this strategy adopted by business consumers?

As a B2B marketer, how would you address your buyer opting for a reverse auction?