Purchasing Situations and Rebuy Decisions

Questions and Answers

What is the primary characteristic of a Straight Rebuy situation?

The buyer changes the product specifications

The buyer purchases the product for the first time

The buyer reorders regular products without modifications (correct)

More participants are involved in the purchasing decision

In a Modified Rebuy, there is no pressure on existing suppliers to perform well.

False

What is the main difference between a Straight Rebuy and a Modified Rebuy?

Modifications to product specifications, terms, and conditions, price, and supplier.

In a New Task situation, the buyer must decide on _______________________.

product specifications, service terms, order quality, price, delivery time, and payment conditions Signup and view all the answers

Match the following purchasing situations with their characteristics:

Straight Rebuy = No modifications, routine work Modified Rebuy = Changes to product specifications, terms, and conditions New Task = First-time purchase, more people involved in decision making Signup and view all the answers

Which of the following is a characteristic of a New Task situation?

More research is required Signup and view all the answers

Study Notes

Purchasing Situations

Straight Rebuy: Buyer purchases a product without modifications, relying on historical experience and satisfaction with regular products from a list of selected suppliers.

Characteristics of Straight Rebuy

Routine work with a list of trusted suppliers
Historical experience and satisfaction influence the purchase decision
No changes to product specifications, terms, or conditions

Modified Rebuy

Buyer alters product specifications, terms, conditions, price, or supplier
More stakeholders involved compared to Straight Rebuy
Existing suppliers face pressure to perform to remain in business
New suppliers try to enter the market by offering better products

New Task

First-time purchase: Buyer purchases a product from a supplier for the first time
Higher stakes: More people involved in decision-making, higher risk, and cost
Research-intensive: Buyer must research and decide on product specifications, service terms, order quality, price, delivery time, and payment conditions

Description

This quiz covers different types of purchasing situations, including straight rebuy and modified rebuy, and their characteristics. Learn how buyers make purchase decisions based on historical experience and satisfaction.