Characterize the straight rebuy, the modified rebuy, and new task decision in organizational purchasing. Provide an example of each.
| a. | The straight rebuy is like a habitual decision. This entails an automatic decision as when an |
inventory level reaches a pre-established reorder point. Most organizations maintain an approved vendor list. As long as experience with the vendor is satisfactory, there is little to no ongoing information search or evaluation.
| b. | A modified rebuy situation involves limited decision making. It occurs when an organization |
wants to repurchase a product or service, but with some minor modifications. This decision might involve a limited search for information, most likely by speaking to a few vendors. The decision will probably be made by one or a few people.
| c. | A new task involves extensive problem solving. Because the decision has not been made before, |
there is often a serious risk that the product won't perform as it should or that it will be too costly. The organization designates a buying center with assorted specialists to evaluate the purchase; they typically gather a lot of information before coming to a decision.