Posted in Marketing and Strategy Terms, Total Reads: 30519
Definition: Modified Rebuy
Modified Rebuy is a buying situation in which an individual or organization purchase goods that have been purchased previously but changes either the supplier or some other elements of the previous order. In this the buyer wants to modify product specifications, terms, prices, suppliers.
In this case the “in supplier” has to protect his account whereas the “out supplier” sees it as a better offer and gain some business. A modified rebuy is less critical and consumes less time. A new product introduction from the earlier version always creates a modified rebuy situation.
The best example for this is 3M. This helps them to always stay ahead in the competition.
Example: - An automobile company may prefer to use an updated version of bearings. For this it will see different suppliers and thus will get many options to choose from and select the best bid.