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BUY GRID FRAMEWORK

&
BUYING SITUATIONS

SAKSHI JAIN(FB09108)
PANKAJ
SONI(FB09098)
ORGANISATIONAL BUYING BEHAVIOUR

Robinson, Faris and Wind, introduced the


buygrid framework as a generic conceptual
model for buying processes of organisations.
They saw industrial buying not as single
events, but as organisational decision-making
processes where multiple individuals decide
on a purchase.

Organisational buying decisions are usually


made by a group of organisational members
labelled in the marketing literature as a
buying centre .
buygrid framework

A conceptual model that describes the


organizational buying process. The model
serves as an easy framework for
visualising the otherwise complex
business buying process and enables the
vendor to identify the critical phases
and situation requiring specific types of
information.
It consists of two dimensions:

 BUYCLASSES(buying situations):
 New task
 Modified Rebuy
 Strategic Rebuy

 BUY PHASE:
 Problem Recognition
 General Need Description
 Product Specification
 Qualified Suppliers
 Proposal solicitation and Selection
 Specify Order Routine
 Purchase & Use
 Performance Review
NEW TASK
 Buyer purchases a product or service for
the first time.
 new task buying situation the buyer seeks
a wide variety of information to explore
alternative solutions to his purchasing
problem.
 The greater the cost or perceived risks
related to the purchase the greater the
need for information.
 The vendor is in a greater position to
influence the decision making process.
MODIFIED REBUY(change in supplier)

 The business buyer wants to replace a


product or service that the firm has
been using.
 Company believe that significant
benefits such as quality improvement
or cost reduction can be achieved by
making the change.
 The decision making unit is however
usually smaller than in new task
situation.
STRAIGHT REBUY(repeat
purchase)
 It is a buying situation in which the buyer routinely
reorders a product or service without any
modification due to satisfaction with the
supplier.
 The supplier is retained as long as the level of
satisfaction with the delivery, quality and price is
maintained.
 New suppliers can only be considered if these
conditions change. The challenge for the new
supplier then is to offer better conditions or draw
the buyer’s attention to some benefits that it is
missing for doing business with it present
supplier.
 The buyer may in turn use the new offerings from
competitors to renegotiate its purchase
Buygrid Framework
Buyclasses

Buyphases New Task Modified Rebuy Straight Rebuy

1. Problem recognition Yes Maybe No

2. General need description Yes Maybe No

3. Product specification Yes Yes Yes

4. Supplier search Yes Maybe No

5. Proposal solicitation Yes Maybe No

6. Supplier selection Yes Maybe No

7. Order-routine specification Yes Maybe No

8. Performance review Yes Yes Yes

8
 The relationship between the buyer and seller is
initiated in phases 1 and 2. Assessing the
buyer's needs and determining gaps between
the current and desired situation is important.
Buyers need assistance in forming realistic
perceptions of both the current and the desired
situation. Need gaps create the motive behind
any purchase.
 The relationship needs to be developed during
phases 3 to 7. A sales person must be aware
that a buyer not only has functional needs, but
psychological, social, knowledge and
situational needs as well. These components
should be addressed in meetings in order to
obtain commitment. The purchase can be a
one-time transaction of a repetitive nature.
When there are multiple deliveries, the
supplier and buyer must agree on an order
 As buyphases are completed, the process
of 'creeping commitment' occurs and
reduces the likelihood of new suppliers
gaining access to the buying situation.

 During the performance feedback and


evaluation phase, the relationship
between the seller and buyer can
develop into a longer term engagement.
Buyer loyalty and customer satisfaction
are primarily determined by the sales
activities during this last phase.

CHARACTERISTICS OF BUYING
SITUATION
 Newness of problem
 Information requirements

 Consideration of alternatives


BUY CLASS NEWNESS OF INFORMATIO CONSIDERATI
PROBLEM N ON OF
REQUIREMEN ALTERNATIV
NEW TASK HIGH MAXIMUM
T IMPORTANT
ES
MODIFIED MODERATE MODERATE LIMITED
REBUY
STRAIGHTRE LOW MINIMAL NONE
BUY
NEW TASK MODIFIED STRAIGHT
Involvement at Full REBUY
Selectively at PURCHASE
Order-routine &
buying of
Attitude involvement at
Problem- Product solvingCustomer-
Problem Follow-up.
process
marketersteps all stepsattitude
solving with specification,
& customer- satisfaction &
buyer. Supplier
updating search Relationship-
onwards building
New Task Modified Straight
Rebuy Rebuy
Behavioral High level of Moderate Limited
Profile of info. amount of info.
buyer search info. search and
* great deal search and analysis
of analysis analysis * Limited
* No previous * High level proactive
guidelines of proactive behaviour
*Limited behaviour * Follow
opportunity * Follow standard
to control standard rules and
purchase Procedures procedures
process
NEW TASK MODIFIED STRAIGHT
Constituents of Extensive Selective
REBUY Regular
PURCHASE
marketing
Buying center interaction
Mapping & by interaction
Depending upon-R&D, interaction by &
user, maintainer
interaction
members team multi-function product marketing,
Managing in satisfying
Maintain
team
Full
Lead
– center
R&D,
the situation
Highlight marginal
specialist &
buyer
Strengthen
logistics & your
focus
Competition buying
from initializing features & benefits position & Resist
Product marketing customer-
step
specialists, legal through innovation entry by
support
& marketing & improvements competition
BUY GRID FRAMEWORK ANALYSIS
 Allphases are applicable for new task.
 Some phases are applicable for modified or
straight rebuy.
 New task situation is most difficult since
buyers have less knowledge, no people &
more people.
 Modified rebuy is not difficult situation
since it has few activities.
 Straight rebuy situation is handled
routinely, as repeat purchases are made.
THANK YOU