new buy

(noun)

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

Related Terms

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.

  • Cash Flow

    • Cash flow is extremely important to firms as this is how they buy goods, pay employees, fund new investments, and pay dividends.
    • This is how they buy goods, pay employees, fund new investments, and pay dividends.

  • 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.

  • 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.

  • The Demand Curve

    • A demand curve is a graph showing the relationship between the price of a certain item and what consumers are willing to buy at the price.
    • Thus, any circumstance that affects the consumer's willingness or ability to buy the good or service in question can be a non-price determinant of demand.
    • Jeffries would buy the ingredients and make the jam.
    • Before starting to boil the jam, they decided to test the market to see whether people would be interested in buying their product.
    • The shift of a demand curve takes place when there is a change in any non-price determinant of demand, resulting in a new demand curve.

  • Purchase Influences

    • Similar to consumers, B2B purchase influences encompass different variables that affect business customers' buying behavior.
    • Customer retention, customer relationship management, personalization, customization, and one-to-one marketing programs are instrumental in encouraging new and repeat purchases in B2B companies.
    • The option of a straight "re-buy" can help to encourage customer retention.
    • A straight "re-buy" occurs when a customer buys the same product, in the same quantity, from the same vendor.
    • Unlike consumer buyer markets, business customers are less emotional and more task-oriented during the buying and decision-making process.

  • Consumer Income, Purchasing Power, and Confidence

    • A consumer's buying power represents his or her ability to make purchases.
    • The economy affects buying power.
    • For example, if prices decline, consumers have greater buying power.
    • When inflation occurs, consumers have less buying power.
    • The ability to predict major changes in consumer confidence allows businesses to gauge the willingness of consumers to make new purchases.