The buying situation where an organization is a first-time buyer of the product or service is referred to as a
A)buy class.
B)new buy.
C)make-buy.
D)straight rebuy.
E)modified rebuy.

Question

Quizplus · Accepted Answer

A first-time buyer of a product or service is referred to as a new buy. This buying situation requires more decision-making and evaluation than a straight rebuy, where the organization is already familiar with the product or service. A buy class refers to the level of complexity and strategic importance of the purchase decision, while make-buy refers to the decision of whether to produce a needed product or service in-house or to purchase it from an outside vendor. Modified rebuy refers to a situation where the organization has purchased the product or service before but is considering changes to the specifications, suppliers, or other elements of the purchase decision.

The Buying Situation Where an Organization Is a First-Time Buyer