A Supplier Signs an Agreement with a Customer That States

question 122

Multiple Choice

A supplier signs an agreement with a customer that states that $350,000 in savings will be earned by the customer over the next 18 months in exchange for a tenfold increase in the customer's share of supplies ordered by the customer. If the supplier achieves less than this promised savings, it will make up the difference. If the supplier achieves substantially more than promised, it participates in the extra savings. This is an example of ________.

• A) solution selling
• B) price fixing
• C) demand shifting
• D) systems buying
• E) risk and gain sharing

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Definitions:

Ethical Conduct

Adhering to a set of moral principles or values in decision-making and actions.

Adaptive Cultures

Organizational cultures that are flexible and able to adjust quickly to changes in the external environment, promoting innovation and learning.

Stakeholders

Individuals or groups with an interest or concern in a business or project, including customers, employees, investors, and suppliers.

Assimilation Strategy

A method used by organizations to integrate individuals or groups into a prevailing culture or set of norms, often minimizing differences to create cohesion.