Question

John owns an ice cream and frozen treat restaurant and is considering adding new menu items. He recently met with the representative of a yogurt company who is trying to convince John to add the frozen yogurt to his menu. John has never offered a yogurt product in the restaurant and has concentrated on ice cream items. The yogurt product would not need a different freezer or dispensing unit, so the investment would be similar to changing flavors of ice cream. However, since he’s never offered yogurt, he’s unsure what the market response will be and how much profit he can achieve with the frozen yogurt. What type of purchasing decision does this represent for John?

Answer 1

Answer:

Modified rebuy.

Explanation:

Modified rebuy is a purchase decision process where there are some modifications to a previously made purchase. Supplier, product, additional item, contractual terms, quality, price, and many other modifications may occur.

This purchasing decision can directly impact consumer perception and changing requirements, business competitiveness and supplier supply.