Question

A paper company is opening a new facility in Canada to increase its paper production. The company researched Canadian pulp suppliers and narrowed the choices down to three potential suppliers. The company then asked each of the three potential suppliers to submit a bid to become its regional pulp supplier. Each of the suppliers crafted a detailed offer outlining its strengths and submitted them to the company. This is known as the ________ step in the stages of organizational buying process.

Answer 1

Answer: Proposal Solicitation Step

Explanation: There are Eight (8) stages in organizational buying process, and they inculde:

1. Problem recognition

2. Need description

3. Product Specification

4. Supplier search

5. Proposal Solicitation

6. Supplier selection

7. Order

8. Performance review.

The Proposal solicitation step is were selected potential suppliers will be asked to submit a proposal which will include catalogs and other documents that will give them a better advantage than others for review by the selecting company.