Question

Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is launching a product that requires the use of fabric labels. To use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of

Select one:
a. vendor analysis.
b. an RFP.
c. a modified rebuy situation.
d. need recognition.
e. a straight rebuy situation.

Answer 1

The correct answer is letter "D": need recognition.

Step-by-step explanation:

The buyer decision process has five (5) steps: need recognition, information search, evaluation of alternatives, purchase decision, post-purchase behavior. In the first stage, need recognition, consumers identify there is a need that must be satisfied. That need can arise because of internal or external stimuli.

Thus, BC bottling is in the need recognition stage of the buyer decision process where the company will need to determine how to source fabric levels from other manufacturers.

Answer 2

Need recognition

Step-by-step explanation:

Need recognition is the first stage of Business to business (B2b) buying process. The new requirements for labeling created a need. The bottling company now recognizes there is a NEED for the latest fabric labels.

Generally need recognition occurs because of either an internal need or customer need. This however is an example of internal need where the company feels the use of fabric label gives a better representation of their products than using plastic label.