A hospital places an order for its customary human resources software upgrade with a new specification for management reports. This is an example of a _________.
A. Specified rebuy
B. Straight rebuy
C. Modified rebuy
D. Upgraded rebuy
Answer: C - A hospital places an order for its customary human resources software upgrade with a new specification for management reports. This is an example of a modified rebuy. A modified rebuy occurs when an organization has past dealings with a seller in purchasing the same items. However, when there is a minor change in the nature of the order, such as the addition of a specification to the human resources software upgrade, the company must modify its order. Specifications are one type of modification in a buyer-seller interaction. Other possible modifications include a request for different pricing, a change in the quantity of an order, or a change in the proficiency and needs of individuals in the organization.