Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power.
A) legal
B) reward
C) referent
D) coercive

Question

Quizplus · Accepted Answer

The described situation is an example of coercive power, where the buyer is using threats and punishment to force the supplier to comply with their demands. Legal power refers to the ability to enforce contracts and agreements through legal means, reward power involves offering incentives for compliance, and referent power is based on the positive relationship and respect between the parties. None of these describe the situation given in the question.

Suppliers Can Gain Power from a Number of Sources in the Buyer