TYPE OF PURCHASE AND YOUR BUSINESS

TYPE OF PURCHASE AND YOUR BUSINESS

Understanding how buyers or consumers behave is key to the success of your business. This is how you get to increase your sales and that translates to profits. You need to know their psychology, sociological make up, social anthropology, even the economics of its all.

So business is all about convincing people to buy from you and at some point you also buy from others, in this case your suppliers

If you know the type of purchase or the type of buying situation, you can leverage this to your advantage or to your business advantage

The Type of purchase often depends on:

1. Purchaser’s level of awareness
2. How they make decisions
3. And how they evaluate their decision

Generally the type of purchase can be;

#1 NEW TASK             

In this case the buyer is making the purchase for the first time, or it could be something that the buyer rarely buys, an example here would be the buyer buying office computers or their first piece of real estate etc, for the first time.

As a business person you need expect the buyer to take a lot of time evaluating alternatives. Remember at this point the buyer has no past experience with this kind of purchase and that means greater risk to them

#2 MODIFIED REBUY OR MODIFIED REPURCHASE

This occurs if a buyer decided to make some modification to a product’s specification, price, terms etc.

Imagine you have been supplying pick-up tracks to a given company and towards the end of the contract or by some reason unknown to you they say they now want hybrid trucks.

This means the rebuy has been modified

Remember this could also be the buyer’s way of trying something new

#3 STRAIGHT RE-BUYS

This type of purchase involves routine ordering.

In this case:

1. The buyer is aware of their choices
2. They know what they are searching for
3. And are in a perfect condition to evaluate it

CONCLUSION

Generally there are about four factors that affect customers’ involvement in each of the three situations that we have just mentioned

1. What the product/service does for the buyers
2. How well or poorly the product or service meets the buyer’s specification
3. The price or amount paid by the buyer
4. Effort exerted in the process by the buyer

If you have any question let me know