Business, Legal & Accounting Glossary
Purchase means to buy. It essentially grants purchasers ownership of a good or service in exchange for money. It can be termed as an economic agent’s demand for a commodity and for effective demand to materialize the presence of purchasing power is an important factor. Monetary income, price of a commodity, price of substitutes, tastes’ and preferences of consumers are some important determinants of demand (for a commodity). Purchase related jobs are available in supply chain management and logistics arena. Purchases aggregated for an entire nation is termed as aggregate demand in economics. Aggregate demand is a major determinant of a country’s price level.
Purchase can be broadly categorized into corporate purchases and consumer purchases. Consumer purchases involve economic discipline of consumer (buying) behaviour. Understanding the elements of customer decision-making is crucial for marketing personnel to design effective marketing programs.
Consumer purchase decisions can be broadly classified as follows:
Online purchases have gained in popularity with today’s tech-savvy consumers.
Some types of corporate purchasing orders are listed below.
Some types of business purchase categories are enlisted below.
It is an ad valorem tax, which is levied on consumer goods. Ad valorem literally means ‘as per value’. Purchase tax calculations are based on wholesale prices. A wholesaler pays this tax but transfers ‘burden of tax’ to retailers. They, in turn, pass it on to customers.
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This glossary post was last updated: 27th March, 2020 | 5 Views.