Three Major Types Of Buying Situation Commerce Essay

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Three Major Types Of Buying Situation Commerce Essay

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to choose, expend, and dispose of products, services, experiences, or ideas to satisfy their needs and the impacts that these processes have on the consumer and society (Noel, 2009). Consumer behaviour mixes elements from psychology, sociology, social anthropology and economics and it also intends to understand the buyer decision making process, both in individual and in groups (Noel, 2009). There are various elements which can influence consumer behaviour, recent research implies that it may vary depending on the buying situation. This essay is going to define the main types of buying situations, outline the characteristics of them and explain factors which are likely to impact customer involvement in each situation.

In general, there are three major types of buying situations (BE, 2005).

  1. • The new task is a business buying situation in which the buyer purchases a product or service for the first time.
  2. • The modified rebuy is defined as a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
  3. • Straight rebuy is a buying situation in which the buyer routinely reorders something without any modifications.

The three types of buying situations could be significantly different. Various factors may work in different situations. Every time when the buyer is to take a purchase decision, buying situation can be different, it may or may not be the same as the previous one. The differentiation between the two buying situations may be caused by the absence of any or all of the following factors (LME, 2006).

• Awareness about competing brands in a product group.

• Customer has a decision criterion.

• Customer is able to evaluate and decide on his choice.

According to the factors above, the three major types of buying situation could be obviously different.

The new task could also be defined as extensive problem solving situation (LME, 2006). In this situation, the buyer has no past experience for products and he is totally new to buy the products which require some and extensive efforts for a buyer to decide about the product purchase. It may take customers longer time to make a decision because it could have a greater risk or cost and take more time in getting know of the new products.

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Modified rebuy could also be called as limited problem solving situation in which supplies a change and gives the customer with new experience and new preference (CM, 2005). It gives a chance to the customer to try something new. If the introduction of a new brand or a product shows many advantages to the customer, it could require a change in the customers’ decision criterion. For example, a housewife decides to buy a soap and she sees a new liquid toilet soap which promises to keep her skin soft and moisturized, the brand also promises to give vitamin E, which the manufacturer claims is required in temperate conditions. The liquid toilet soap brand is available in four fragrances .The pack can be refilled every time the soap gets fully consumed .Now this introduction is likely to change her decision and may be the choice criterion. If she spends some time in evaluating the liquid toilet soap against the normal bar soap and then decides t