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Definition

Problem recognition

Problem recognition- the first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.

Problem recognition can result from internal or external stimuli. Internally, the company may decide to launch a new product that requires new production equipment and materials. Or a machine may break down and need new parts. Perhaps a purchasing manager is unhappy with a current supplier’s product quality, service, or receive a call from a salesperson who offers a better product or a lower price.

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