Gill's Bakery has been buying flour from the same supplier for years.But due to recent price hikes,Gill's decides to switch to another supplier that is offering the same quantity and quality of flour at a reduced price.Which of the following best describes the buying situation that has occurred?

Question

Quizplus · Accepted Answer

This situation is a modified rebuy because Gill's Bakery is making a change to their existing purchase arrangement due to the price hikes from their current supplier. They are not buying for the first time (which would be a new buy) nor are they simply repeating a previous purchase without changes (which would be a straight rebuy). A reverse auction and derived demand do not directly apply to the scenario described.

Gill's Bakery Has Been Buying Flour from the Same Supplier