new buy

(noun)

A purchasing situation requiring the purchase of a product for the very first time.

Related Terms

  • B2C
  • straight re-buy
  • modified re-buy
  • B2B

Examples of new buy in the following topics:

  • Buying Situations

    • B2B buying situations vary from B2C buying situations, so B2B marketers must develop different capabilities.
    • Such detailed assessment eliminates the risk of buying the wrong product or service.
    • Buyers go though three stages of the buying process, which include:
    • The problem is that marketers have to face the realities of the B2B buying cycle, which include:
    • Like B2C businesses there are similar buying types in B2B sales activities that include new buys, straight re-buys and modified re-buys.
  • Types of Buying Decisions

    • Buying decisions are based on buyer behavior.
    • Consumers will often buy on emotion or impulse whereas businesses will buy based on need.
    • Because consumers often buy on emotion, ads can affect the buying decision.
    • Most people can't afford to buy a new car when they want one, they need to wait until their current car needs to be replaced.
    • This is why companies can influence what type of car a person will buy, but not when they will buy one.
  • Nationalization of the News

    • Nationalization of the news refers to the modern phenomenon of the decline of local news networks and the increase in power of national news networks.
    • News operations have begun to feel the burden of needing to generate news content on a 24-hour news cycle, while keeping material fresh on their regularly scheduled newscasts.
    • The larger networks like ABC News , NBC News, and CBS News are able to afford these technologies and are beginning to buy out the smaller, local networks.
    • The news block was divided into local, national and international stories.
    • ABC News is an example of a large networks "buying out" smaller ones.
  • Federal Open Market Committee

    • Furthermore, the Federal Reserve Bank of New York is responsible in carrying out the general directive.
    • The Fed Bank of New York deals with about 40 dealers who specialize in U.S. government securities (i.e. secondary market).
    • The New York Fed and dealers are connected electronically.
    • The Open Market Trading Desk is the department within the New York Fed Bank that buys and sells the government securities.
    • The Fed can influence bank reserves by a little amount by buying few U.S. government securities or by a large amount by buying many securities.
  • Answers to Chapter 5 Questions

    • For example, the New York Stock Exchange is an organized exchange, while bond dealers buy and sell government and corporate bonds.
    • The Dow Jones Average is an average of the top, blue-chip stocks on the New York Stock Exchange.
    • Furthermore, some investors borrowed to buy stock, and they cannot repay the loans.
    • Adverse selection is a person knows he drives recklessly and buys insurance to protect his car.
  • Stages of Business Buying

    • Buying center participants assess problem and need to determine what is necessary to resolve/satisfy it
    • This 5 step process is mainly used with new-task purchases and several stages are used for modified rebuy and straight rebuy.
    • Understanding the stages of business buying and the nature of customers' buying behavior is important to a marketing firm if it is to market its product properly.
    • Buying one can of soft drink involves little money, and thus little risk.
    • Buying B2B products is much riskier.
  • Influences on Business Buying

    • During these formative years, customer demand for new products will likely outstrips supply, while production problems and resource constraints represent more immediate threats to the survival of new businesses.
    • New entrants are attracted to potential growth opportunities, and existing producers attempt to differentiate themselves through improved products and more efficient production processes.
    • Organizational factors such as the company's objectives, purchasing policies, and resources can influence the buying process.The size and composition of the buying center also plays a role in the business buying decision process.
    • The interpersonal relationships between people working in the company's buying center can hinder the buying process.
    • The personal characteristics of people in the buying center can influence the buying decision process.
  • Buying Centers

    • A buying center is a group of people within an organization who make business purchase decisions.
    • The stock market is an example of a buying center.
    • In a generic sense, there are typically six roles within buying centers.
    • They are important when products involve new and advanced technology.
    • They control the flow of information to and among others within the buying center.
  • Growth through buying out other companies

    • An acquisition strategy can also be pursued to enable growth in new geographic markets.
    • Moreover, the opportunity for expansion via acquisition is particularly attractive in other countries, where it can be difficult to establish new businesses.
    • Firms can also integrate vertically through acquisition, i.e. by buying out suppliers or customers to process more steps in the value chain in-house.
    • Cost advantages can arise either through buying or building up cheaper distribution channels (forward integration), or cheap inputs (backward integration).
    • The acquisition of other firms can also be a chance to gain technological knowhow, or even new technologies in the form of patents.
  • Factors Affecting Channel Choice

    • There is a need to know what the customer needs, where they buy, when they buy, why they buy from certain outlets, and how they buy.
    • In much the same way that buying specifications of ultimate users are determined, the manufacturers must also discover buying specifications of resellers.
    • Of particular importance is the question, "from whom do my retail outlets prefer to buy?
    • In cases when a company is just getting started, or an older company is trying to carve out a new market niche, the channel objectives may be the dominant force on channel choice.
    • Growth in sales - by reaching new markets and/or increasing sales in existing markets.
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