Walmart has threatened to cut off business from a supplier if it does not lower its prices. This is an example of legitimate power.

Question

Walmart has threatened to cut off business from a supplier if it does not lower its prices. This is an example of legitimate power.​

Quizplus · Accepted Answer

Legitimate power is based on a person's position or role within an organization, granting them the authority to influence others. Threatening to cut off business due to price disagreements is more related to coercive power, which is based on the ability to deliver sanctions or punishments.

Walmart Has Threatened to Cut Off Business from a Supplier