Handell has established a small company that manufactures decorative items for homes.One of the company's latest items is a line of thermometers reproduced from ones that were given away for free before World War II.Since quality is essential to the company's success,it has spent a great deal of time and effort locating the best suppliers for the metal,wood,paint,and mercury for its first round of production.The purchase of these components would be an example of a _____ buying situation.
A) new-task
B) straight rebuy
C) derived-demand
D) value-added
E) modified rebuy

Question

Quizplus · Accepted Answer

This is a new product line for Handell's company, so the purchase of the components needed for production would fall under a new-task buying situation. This type of buying situation requires a lot of time and effort to locate the best suppliers and ensure that quality standards are met for the new product line.

Handell Has Established a Small Company That Manufactures Decorative Items