BUY GRID FRAMEWORK

&
BUYING SITUATIONS

SAKSHI JAIN(FB09108)
PANKAJ SONI(FB09098
RGANISATIONAL BUYING BEHAVIOU

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 conditions with the present supplier.
 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

7-8
 PROBLEM RECOGNITION
BUYER:

A machine breaks down and require new parts. Purchased

material turns out to be unsatisfactory. A purchasing manager
senses an opportunity to obtain lower prices or better quality.

BUSINESS MARKETERS:

They can stimulate problem by telemarketing, direct mail and

calling on prospects.
GENERAL NEED DESCRIPTION

BUYER:

Determines the needed item’s characteristics and required

quantity.

BUSINESS MARKETERS :

Describe how their product meets buyer’s needs. The supplier

can provide ADD On SERVICES to gain a competitive edge.
 SUPPLIER SEARCH

BUYER:

Tries to identify the most appropriate supplier through trade

directories, contacts etc..

SUPPLIER:
They put products, prices and other information in order to grab the
deal.
PROPOSAL SOLICITATION
BUYER:

They invite qualified suppliers. If item is complex or expensive

they demand written proposal form and a formal presentation.

SUPPLIER:
They must be expert in presenting proposals which add value and
benefit in customer terms.
SUPPLIER SELECTION
BUYER:
To rate and identify the most attractive suppliers buying centers
often use supplier evaluation model.
ATTRIBUTE RATING SCALE
WEIGH POOR FAIR GOO EXCELLE
T D NT
PRICE .30 X
SUPPLIER REPUATION .20 X
PRODUCT RELIABILITY .30 X
SERVICE RELIABILITY .10 X
SUPPLIER FLEXIBILTY .10 X

SUPPLIER:
They need to do a better job of understanding how business buyers
arrive at their valuations
ORDER ROUTINE SPECIFICATION

BUYER:
They negotiate the final order, technical
specification, quantity needed, expected time of
delievery and so on.
SUPPLIER:
They take care that they are complying with the
contract.
 PERFORMANCE REVIEW

BUYER:
They periodically reviews the performance of the choosen suppliers.

SUPPLIER:
They apply customer relationship management at this stage of time
to enjoy a long term relationship and be their first preference for
straight rebuy.
 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 routine.
 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 INFORMATION CONSIDERATIO
PROBLEM REQUIREMENT N OF
ALTERNATIVES
NEW TASK HIGH MAXIMUM IMPORTANT

MODIFIED MODERATE MODERATE LIMITED

REBUY
STRAIGHTREBUY LOW MINIMAL NONE
BUY GRID FRAMEWORK ANALYSIS
 All phases 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