6 Discuss how the buying situation affects the buying center

6. Discuss how the buying situation affects the buying center, the buying process, and buying needs?

Solution

Buying situation can be defined as the condition where an organization or individual needs to purchase a commodity in order to run the business. This situation is a very regular phenomenon that each and every organization witness on a daily basis and the purchase can be segregated into straight rebuy and a modified rebuy. The straight rebuy is the process of purchasing an item from the same vendor and in this process is considered as the routine mandate process requiring minimum effort. The modified rebuy is the process of purchasing the same commodity but from a different vendor because of various reasons. The buying situation affects the buying center, the buying process and the buying needs directly a buy requires a lot of decision making in the process and lots of parameters needs to be assessed too.

The buying center is generally the decision making unit of an organization which includes people from various departments like the finance department, management and also the technical team because it needs to be decided that the buy is actually beneficial for the organization. The importance of purchase is assessed and evaluated by the unit so that the buy is successful in all aspects. The buying process is also a decision making process and this process takes place before, during and after the purchase have been made. It can be defined as the expense and benefit analysis with alternatives available. Unlike buying center which involves in decision making process only before the purchase, buying process can think about it even after the purchase is complete. In order to understand the buying needs various questions needs to be asked so that the actual objective of the purchase is understood. If it is the consumer who is purchasing, then the organization needs to ask the consumer appropriate questions about the requirements and demands so that the objective of the purchase is clear. A buying situation involves so many processes in order to make the purchase effective and successful.