Buy-Grid Model

Buy-grid Model
History
In 1967, the Canadian, American and Israeli marketing researchers,

Robinson, Faris and Wind, introduced the buygrid framework as a
generic conceptual model for buying processes of organizations.
They saw industrial buying not as single events, but as
organizational decision-making processes where multiple
individuals decide on a purchase. Their framework consists of a
matrix of buy classes and buy phases.
Or
In other words, the buy-grid model is a business model depicting

rational organizational decision making. Business marketers use
the buy-grid model to portray the steps businesses go through in
making purchase decisions. The model includes two components:
buy phase and buy class.
Buy Classes
Buy phase represents the logical eight steps businesses (or consumers involved in extensive
problem solving) go through
1. Need recognition.
2. definition of PRODUCT type needed
3. development of detailed specifications
4. search for qualified suppliers
5. acquisition and analysis of proposals
6. evaluation of proposals and selection of a supplier
7. selection of an order routine
8. Performance feedback and evaluation
Most business-buying situations do not involve all of the steps in the buygrid model.
The number of steps varies with the buy-class, the type of buying decision. There are
3 major buy situations or classes. They are:
9. New Tasks,
10.Straight Rebuys,
11.Modified Rebuys.
1. New Tasks
The organization faces an entirely new buying situation.
For Example,
Purchase new type of equipment, construction of new building,

purchase of materials (which were not bought earlier) for
manufacture of a new product, buying consultancy service(for
the first time) etc. As the organization has no past experience in
the buying of this product, this situation may demand the whole
gamut (the complete range) of the decision making process.
The complexity will depend upon the technical complexity of

the product, the cost of the product, the critical nature or
importance of the product etc.
1. New Tasks
Some of the new task situations relate to,
one time or very infrequent purchases, such as land, machinery,

building etc.
Where as some of the new tasks relate to the first time

purchases of what will be recurring purchases in the future,
representing modified rebuy or straight rebuy situations.
Examples: first time purchase of raw materials, component parts

and office supplies by a new firm.
New Tasks : Marketing Implication
Every Buying Situation implies that the In-Supliers (those which

are already suppliers of the firm) & Out-Suppliers (those which
are not already suppliers of the firm) should be alert & dynamic.
To seize the opportunity of a new task buying, the suppliers

should monitor the changing or emerging purchasing needs in
the company & should try to actively participate in the early
phase of the buying process. If the in-supplier can supply the
company useful information or technical advise such involvement
would be easy. The same is applicable to an out supplier who
wants to seize the opportunity.
2. Straight Rebuy
Straight rebuy occurs in the case of repetitive purchases when the buyer is
convinced that the existing suppliers is the best source.
In other words, straight rebuy results from the situation where the buyer is
completely satisfied with the present supplier in respect of product quality
/specifications, price, delivery, services, relationships etc. or when there is no
better alternative available.
This is the most common situation in business buying. Purchasing of raw

materials, components, supplies, regular services etc. often routinised.
Once a system, involving purchase policies and procedures, is established, the

buying process goes on smoothly without the need for the involvement of the
top level management and many of the phases.
Straight Rebuy : Marketing Implication
A straight rebuy situation should not make the in supplier

complacent. An in-supplier should bear in mind that any time an
out-supplier may come with a better alternative that can displace
him. Hence in a straight rebuy situation, an in supplier shall strive to
keep improving his offerings and to initiate changes and reinforce
the relationship with the customer.
An out-supplier shall try to be a better alternative & convince the

buyer of the need to reconsider the buying situation.
If the out-supplier does not have a better offering, he / she may try
to get into the list of the organization’s approved suppliers so that in
due course he / she could also become an in-supplier, albeit, not the
most preferred.
3. Modified Rebuy
Modified rebuy results from a situation where there is a mismatch

between the buyer’s requirements/anticipation and the supplier’s
offering / performance.
Buyer’s dissatisfaction with the product , price delivery or

relationship may lead to modified rebuy. Environmental factors may
also cause modified rebuy. Even with supplier, with whom the buyer
was happy in the past & who continues to perform with equal or
better efficiency and commitment, the buyer may re-evaluate the
situation if newand better alternatives are available now.
Many organizations review/re-evaluate the situation, as a matter

of policy, periodically. Puchase policy restructuring may also lead to
modified rebuy. Sometimes personal whims and fancies and vested
interests also are behind modified rebuy.
Modified Rebuy : Marketing Implication
A Modified rebuy connotes that the company is not happy with

in-supplier. The in-supplier should, therefore, strive to remedy the
situation quickly and reassure the company of required level of
performance. An in-supplier should, in fact earnestly endeavor to
sustain his / her business by being proactive & constantly striving
to improve his / her performance.
An out-supplier should try to identify the weaknesses of the in-

suppliers or the company’s problem with the in-suppliers and offer
a better alternative.
Reference
1. Industrial Marketing by Francis Cherunilam
2. https://www.provenmodels.com/549/buygrid-framework/c.-w.-faris--patr
ick-robinson--yoram-wind
3. http://marketing-management-business.blogspot.in/2009/11/buy-grid-m
odel.html

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In 1967, the Canadian, American and Israeli marketing researchers,

In other words, the buy-grid model is a business model depicting

The organization faces an entirely new buying situation.

Purchase new type of equipment, construction of new building,

The complexity will depend upon the technical complexity of

Some of the new task situations relate to,

one time or very infrequent purchases, such as land, machinery,

Where as some of the new tasks relate to the first time

Examples: first time purchase of raw materials, component parts

Every Buying Situation implies that the In-Supliers (those which

To seize the opportunity of a new task buying, the suppliers

This is the most common situation in business buying. Purchasing of raw

Once a system, involving purchase policies and procedures, is established, the

A straight rebuy situation should not make the in supplier

An out-supplier shall try to be a better alternative & convince the

Modified rebuy results from a situation where there is a mismatch

Buyer’s dissatisfaction with the product , price delivery or

Many organizations review/re-evaluate the situation, as a matter

A Modified rebuy connotes that the company is not happy with

An out-supplier should try to identify the weaknesses of the in-

1. Industrial Marketing by Francis Cherunilam

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