There are different ways of buying goods and services Major Ways of Buying Are
Cash purchases
Credit purchases
Credit card
Instrument buying
Hire purchase
Mortgage purchase
Mail buying
Tele marketing
Black marketing
Cash Purchase: Cash purchase method is the most common practice. It is simple and the consumer can demand a particular brand, quality and quantity. A person can buy according to his budget. Hence he can avoid impulsive buying. Buyer gets better treatment from seller because the seller gets cash payment immediately.
Credit Purchase: This is a convenient way of buying daily necessities from grocery shops or other suppliers. Credit buying saves efforts to carry money and time in calculating the same for required buying. Credit buying may help in ordering goods over telephones without visiting the shops or making cash payment. However there are some disadvantages on buying on credit. The seller may charge service charges. The customer may be tempted to buy more as he has the credit facility.
Credit Cards: Credit cards are offered by a number of banks and sellers credit cards facilitate buying without payment of cash: The advantages of credit are emphasized by banks and credit card companies (which enables) these cards enable people to buy goods and services when there is shortage of cash. However such purchases tempt credit cardholders to spend more than what their income permits and they may find it difficult to cope with payment liabilities.
Credit card has disadvantages which the buyers have to note before using them. They have to make payment within a specified period after the use of credit card like one month. Another difficulty is if the credit card is lost it may be used by others who have stolen it and the liability of making payment will be on the card holder. Thus it is better to make purchases on cash to avoid the above difficulties of using credit cards. Installment Buying This method of buying is easy since the buyer pays the money in equal installment instead of a down payment of entire amount. Costly goods T.V. refrigerators etc are bought on installment basis by those who cannot pay the entire amount at a time. However the buyer will be paying more for the goods under this type of payment. But he will possess the goods before all the installments are paid. The title of the property shall not pass on to the buyer till the entire amount is paid. Hire Purchase The product is hired by the purchaser on monthly payment and interest is paid to the seller. The buyer is using the goods without being the owner. When the price of the amount along with the interest is fully paid he will be purchasing the article and becomes the owner. High priced goods like car or house are bought on this basis. Mortgage Purchase Mortgage purchases relate usually to purchases of property or house. The property is pledged as a security with some initial payment. The future installment payments are settled in advance and the house or the property is taken possession of. As soon as the amount is fully paid the mortgage papers are returned to the buyer. In case the buyer is unable to make the payment the seller can sell mortgaged securities and recover the amount owing to him. The buyer will be loosing the house and the securities or only the securities as per the agreed terms of mortgage. A third party guarantee is usually provided to the seller for payments incase of death or other inability. Mail Buying This type of buying is done through postal correspondence between the seller and the buyer. The advertised information regarding the articles their quality, price and design etc are mentioned when a buyer gives an order through post. The supplier sends the bills including the postage and supplies the articles on receipt of the money payment may be made by the postal order or bank draft. Telemarketing and Online Marketing Telemarketing is the buying and selling through telephone messages. The buyer sends the order through telephone to the seller specifying the type of article and the seller sends them to the buyer through usual transport. The buyer makes payment and takes delivery of the same. Online marketing is done through orders sent by the buyer using credit card. The seller delivers the goods to the consumers at his doorstep. Tele marketing and online marketing is similar in placing orders and delivery. The difference lies in sending orders. Black-marketing This is an illegal method of marketing where goods are sold at much higher prices than the prevailing market prices. Such methods are followed due to shortages of goods. This is a very exploitative method of selling. Such practices are observed in selling of rail and air tickets, cinema ticket, smuggled goods, imported goods. Most of the buyers belong to high income groups and those who can not wait for long, standing in queues and who want to save time.
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