Types of Consumer buying Decisions:
It is complexity and difficulty of the purchase situation that influence the purchase decision process. At one side, people or small corporations make routine decisions without much effort due to the fact they’re perceived as much less complicated and contain little or no risk. At the opposite end are organisational decisions which can be considered as complicated, entail a good deal of risk and feature crucial implications for the organisation. The buying decisions continuum for ultimate purchasers consists of nominal decision-making, restrained decision-making and prolonged decision-making. The scenario is barely unique in case of establishments as their purchases contain a bigger variety of complexity in comparison with most individuals or household decisions and includes three situations.
Straight Re-buy: It is like making usual procurement and involves a routine choice, as happens when the inventory level reaches a fixed reorder position. Most organizations prepare and maintain an official dealer list. These are instead routine purchases to meet ongoing and routine necessities and are commonly below standard terms and conditions of agreement of purchase. The purchases are of comparative less importance, regarding little uncertainty due to fulfillment exists with past goods, conditions and service. Example: The consumer is generally to have restrained buy power like buying paper for photocopiers and printers.
Modified Re-buy: It is another situation of buying goods and material in which purchase order is created for non-routine or modified requirement. These decisions are a bit significant and involve partial decision-making. There is significant medium level of uncertainty as the company wants to reorder a goods or services but with some small modifications. There might be little or several choices. Example: A cake or bakery item producer might seek lesser prices, faster delivery and higher quality of cream from dealer to meet the varying market conditions. In case of a modified re-buy, condition competing trader may see an opportunity to get the company’s trade and regular seller might become more insistent and competitive to retain a customer.
New Task: Such buying entails extended decision-making due to the fact the requirement is new, and the item is being bought for the first time to carry out a brand new activity or crack a new problem. There is usually a severe threat that the product might not work as expected or that it will likely be too costly. New task buying may also contain improvement of product specifications, vendor specifications and plans for future buy of the product. In all such purchases, the industrial customer desires a terrific deal of information and cautious establishment of criteria of standards on which to evaluate the product for purchase. Example: Procuring heavy machinery or an airplane for goods transportation typically is a new task.
Doyle, A. G. Woodside and P. Michell are of the view that new tasks and modified re-buy are rather alike but straight re-buys are pretty different.