Small manufacturers are successful often because Wal-Mart agrees to carry their products. If Wal-Mart does not like a price increase, it often will refuse to do business with the manufacturer. At this point, many small manufacturers will offer price reductions because they fear failure if they lose the Wal-Mart account. The relationship between these small manufacturers and Wal-Mart can be described as ____.

Question

Quizplus · Accepted Answer

The relationship is buyer dependent because the small manufacturers rely heavily on Wal-Mart to carry their products, and Wal-Mart has significant power over them.

Small Manufacturers Are Successful Often Because Wal-Mart Agrees to Carry