When Magna International developed an automated after-market roof rack for the Hummer H2, they had to buy some of the materials for the first time and seek an appropriate supplier. This represents a ________ buying situation.
A) new task
B) modified rebuy
C) straight rebuy
D) pioneering purchase
E) direct purchase

Question

Quizplus · Accepted Answer

A new task buying situation occurs when a company is buying a product or service for the first time, and therefore they have to undertake an extensive decision-making process to evaluate different options and select the best one. In this case, Magna International had to develop a new product (an automated after-market roof rack) for a specific model (the Hummer H2), which required purchasing new materials that they had not used before and finding an appropriate supplier. This process involves a significant amount of research, analysis, and negotiation, which is typical of a new task buying situation.

When Magna International Developed an Automated After-Market Roof Rack for the Hummer