Buyers' perceptions of risk in supplier selection decisions:
A)are generally the same for A,B,and C items.
B)are generally the same for strategic and non-strategic items.
C)are generally the same for new and current suppliers of the same items.
D)vary depending on the level of customization of product or service.
E)vary depending on the level of data available in each case.

Question

Quizplus · Accepted Answer

Buyers' perceptions of risk in supplier selection decisions vary depending on the level of customization of product or service. When a product or service is highly customized or unique, there may be more risk involved in selecting a supplier as there may be a limited pool of potential suppliers with the necessary capabilities. However, for standardized products or services, the risk may be lower, as there may be many potential suppliers to choose from.

Buyers' Perceptions of Risk in Supplier Selection Decisions