Buying firms prefer a transactional relationship when:

Question

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When there is a competitive supply market featuring many alternatives, the buying firms prefer a transactional relationship as it allows them to easily compare and choose between suppliers. Similarly, in a stable supply market, a transactional relationship makes sense as there is less need for ongoing communication and collaboration with the supplier. However, in a high complexity purchase, a relational or partnership approach may be more appropriate to ensure mutual understanding and successful implementation of the purchase. Therefore, options B and C alone do not cover all scenarios where buying firms prefer a transactional relationship, and option D is not the best choice as it includes a scenario where a relational approach would be preferred. Option E covers the specific scenarios where transactional relationships are preferred by buying firms.

Buying Firms Prefer a Transactional Relationship When