B-to-B e-commerce features online bidding.When a company solicits bids for buying commodity raw materials,this is known as:
A) a bidding war
B) an auction
C) a reverse auction
D) an open auction
E) None of the above

Question

Quizplus · Accepted Answer

When a company solicits bids for buying commodity raw materials, it is known as a reverse auction. In a reverse auction, multiple suppliers bid for the buyer's order, and the buyer chooses the supplier with the most favorable bid. This is different from a traditional auction or open auction, where buyers bid for an item being sold by a seller. A bidding war is a situation where two or more parties keep increasing their bids to outdo the other for an item being auctioned. Therefore, the best choice for this scenario is C - a reverse auction.

B-To-B E-Commerce Features Online Bidding