Question

1. What are the three different types of organizational purchases? Describe the differences between these types in terms of complexity, time frame, number of suppliers, and applications Show your analysis in a table. Discuss the different organizational purchase types as they relate to a business (not a consumer) purchasing a business product or service. Be specific.

Answer 1

The three different types of organisational purchases are as follows:

• Straight Rebuy: This happens in case of repetitive purchases where the buyer is convinced that the existing supplier is the best one.
• Modified rebuy: This happens in a situation where there is a mismatch between the buyer's requirement and the seller's offering.
• New task purchase: This happens when an organisation faces an entirely new buying situation.

TYPE	Complexity	Time frame	Number of suppliers	Application
Straight Rebuy	Simple	Short	One	Frequently purchased, Routine products example printer ribbon
Modified Rebuy	Moderate	Medium	Few	Routine purchases that changes in some way, example air travel where fares and destination changes
New task Purchase	Complex	Long	Many	Expensive, Rarely purchased products example new departmental location at new location