Types of Business Purchase Decisions

Because of the nature of the business market many marketing academics grouped business purchase situations into only three categories (in consumer market there are 4 of them: Minor New Purchase, Minor Re-Purchase, Major New Purchase, Major Re-Purchase). The reason is that the idea of a minor order may not hold as well in the business market, where buyers tend to place larger orders and where suppliers’ marketing efforts are directed toward the most profitable buyers.

· Straight Re-Purchase - This happens when the product is purchased regularly, and this is simply a repeat order(повторне замовлення). In most cases buyers simply reorder the same products or services that were previously purchased. For the supplier benefiting from the re-purchase this situation is ideal since the purchaser is not looking to evaluate other products. For competitors who are not getting the order it may require extensive marketing efforts to persuade the buyer to consider other product or service options.

· Modified Re-Purchase – This happens when there is some change to the usual order, either in quantity or in specification. There are many reasons why a product is moved to the status of a modified re-purchase. Some of these reasons include: end of purchase contract period, change in who is involved in making the purchase, supplier is removed from an approved suppliers list, mandate from top level of organization to re-evaluate all purchasing, or strong marketing effort by competitors. In this circumstance the incumbent supplier faces the same challenges they may have faced when they initially convinced the buyer to make the purchase. For competitors the door is now open and they must work hard to make sure their message is heard by those in charge of the purchase decision.

· New Task Purchase – This happens when the product is totally new to the company, and therefore involves the most time and negotiation. As the name suggests, these purchases are ones the buyer has never or rarely made before. In some ways new task purchases can be considered as either minor or major depending on the total cost or overall importance of the purchase. In either case the buyer will spend considerably more time evaluating alternatives. For example, if faced with a major new task purchase, which often involves complex items, such as computer systems, buildings, robotic assembly lines, etc., the purchase cycle from first recognizing the need to placement of the order may be months or even years.

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