The Buy Grid Model is a framework that is used to understand the buying behavior of organizations. It was developed by Robinson, Faris and Wind in the late 1960s. The model outlines the different stages of the organizational buying process and the factors that influence buying decisions. The Buy Grid Model is particularly useful in helping organizations understand how to sell to other organizations.
The Buy Grid Model consists of two dimensions: the degree of the problem and the level of the decision-making process. The degree of the problem refers to how complex the buying decision is, while the level of the decision-making process refers to the number of people involved in the buying decision. The model identifies four different types of buying situations:
1. Straight Rebuy: A straight rebuy situation occurs when the buyer simply reorders a product that has been previously purchased. In this situation, the buyer does not need to do any research or evaluation of alternatives. The decision-making process is straightforward, and only one person is usually involved in the decision. This type of buying situation is the most common.
2. Modified Rebuy: A modified rebuy situation occurs when the buyer wants to reorder a product, but wants to make some changes to the specifications, price or other terms. In this situation, the buyer may need to do some research and evaluate alternative options. The decision-making process is more complex than a straight rebuy, and more than one person is usually involved in the decision.
3. New Task: A new task situation occurs when the buyer needs to purchase a product for the first time. In this situation, the buyer needs to do extensive research and evaluation of alternatives. The decision-making process is complex, and several people are usually involved in the decision.
4. Systematic Acquisition: A systematic acquisition situation occurs when the organization is looking to change suppliers or add a new supplier. In this situation, the organization must research and evaluate different suppliers, and negotiate terms and conditions. The decision-making process is complex, and several people are usually involved in the decision.
The Buy Grid Model also identifies different factors that influence the buying decision. These factors include:
1. Environmental factors: These include the economic, political, technological, and cultural factors that impact the buying decision.
2. Organizational factors: These include the organizational structure, culture, policies, and procedures that impact the buying decision.
3. Interpersonal factors: These include the relationships between the people involved in the buying decision, including their level of trust, communication, and power dynamics.
4. Individual factors: These include the personal characteristics of the people involved in the buying decision, including their values, attitudes, and personalities.
In conclusion, the Buy Grid Model is a useful framework for understanding the buying behavior of organizations. It helps organizations identify the different types of buying situations and the factors that influence buying decisions. By understanding these factors, organizations can tailor their marketing strategies to meet the specific needs and preferences of their customers.
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