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New Task Purchase

This article covers meaning & overview of New Task Purchase from marketing perspective

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: June 01, 2023Read time:

What is New Task Purchase?

New task purchase is the one purchase decision that has not been done previously by the business as they didnot have the need for a new product / task. The new purchase is different from re-purchase as a new purchase will require a lot of evaluation from the buyer both for the product they intend to purchase and the vendor that the want to purchase from. New task purchase are usually done by a company when a need is recognized within the organization. This need may come internally from the firm or may have come from externally (e.g. Clients).

After the need is recognized the company tries to evaluate several products that can satisfy this need and also looks for consultants/Vendors that can provide solutions for the need. During this process a company will look at several vendors and evaluate them for their capabilities to serve the product/service. After the initial qualification check the company asks all the eligible suppliers/Vendors to submit their bids (also called the Tendering process).

After evaluation of the Bids the firm may decide to purchase the Product/service from any of the Vendor which suits its needs best. Many companies usually go for the lowest price bids when there is no difference in the product of different supplier and the purchase decision is made.

After the purchase decision the companies usually re-evaluate their purchases and then decide about the future purchases of similar product.

For Example: - A company working in a rented office thinks to build a new office of their own will first decide the location and size of the office according to their need and then take bids from several contractors for constructing the office. The company may choose the contractor on the basis of the bid Price or also on the basis of its reputation to complete projects on time.

Hence, this concludes the definition of New Task Purchase along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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