Which of the following is TRUE of the supplier-buyer relationship?
a) Suppliers and buyers are inflexible with regard to purchase terms in negotiated contract buying
b) Powerful buyers negotiate lower prices from suppliers
c) Close supplier-buyer relationships have the ability to drive down prices and spur innovation in ways that the competitive bidding process cannot match
d) Buyers usually do business with a single supplier to reduce their risk
e) Relationship-specific adaptations can be avoided when a buying organization chooses to outsource
Answer: b) Powerful buyers negotiate lower prices from suppliers