Business – to – Business Exchanges
Business-to-business (B2B) exchanges are a business model involving two organizations engaging in business activities which generally utilizes online networks (Kenjale, 2012). This is common to companies that serve as suppliers for another company. It involves a procurement process that follows an information gathering stage, transaction negotiation stage and the settlement stage. Three types of B2B exchanges exist which exemplify the relationship between the seller company and the buyer company, namely: new buy, modified rebuy and straight rebuy. All three utilizes the internet in the conduct of the business. (Kurtz, 2010)
New Buy is a situation where a company makes a purchase from another company for the first time. A company can be engaged in a new buy situation when it needs to purchase things for the first time or if it has been purchasing the same product from a different company before but would want to look for a cheaper or a better quality than what it has been used to. As a result of a new buy situation, a new seller – buyer relationship is established. The internet can be utilized by both parties in this situation. Seller utilizes the internet to advertise its products and as a means of communicating and reaching out to possible clients while buyers use the internet for lead generation and to gather information relevant to the product they need. In this way, they will have an idea of where and who to contact when ordering or to compare the features of the products they need. (Lamb, 2012)
Modified Rebuy on the other hand, is less time consuming compared to a new buy. It involves some modification to the old order. This means that that there is already an existing seller-buyer relationship, only, there are some changes to the order the buyer has or the specifications. The internet is utilized in this situation mainly as a means of communicating between the buyer and the seller and to facilitate the pricing of the new or the modified orders.
Straight rebuy is a B2B exchange where the specifications of the previous order are just reordered. This means that there is an existing relationship between the buyer and the seller. This situation is favorable to the sellers part because it does not need to conduct negotiations as agreements implemented before are also implemented in the new order. The internet serves mainly as a means communication to facilitate ordering on the part of the buyer and facilitate schedule of delivery of the part of the seller. (Lamb, 2012)
References:
Kenjale, Ken (2012). “The Benefits of B2B Exchanges “. CRM.com. Retrieved from http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/The-Benefits-of-B2B-Exchanges-48031.aspx
Kurtz, David (2010). Contemporary Marketing. Retrieved from http://books.google.com.ph/books?id=lf7VKtZcJlgC&pg=PA180&lpg=PA180&dq=new+buy,+modified+rebuy+and+straight+rebuy&source=bl&ots=eOAs1vKJex&sig=HZeOv7Ia8_uPsQjYCdh74ls1T4s&hl=en&sa=X&ei=levAT8XDIo_GmQWlxI3DCg&ved=0CEoQ6AEwBA#v=onepage&q=new%20buy%2C%20modified%20rebuy%20and%20straight%20rebuy&f=false
Lamb, Charles (2012). Essentials of Marketing. Retrieved from http://books.google.com.ph/books?id=QpCvQfnPpNwC&pg=PT276&lpg=PT276&dq=new+buy,+modified+rebuy+and+straight+rebuy&source=bl&ots=hYrZ_CmtSg&sig=PBntVbFskKHmVM9kz3fMB6uiJfU&hl=en&sa=X&ei=levAT8XDIo_GmQWlxI3DCg&ved=0CDwQ6AEwAQ#v=onepage&q=new%20buy%2C%20modified%20rebuy%20and%20straight%20rebuy&f=false
