Robert was the purchase agent of an office furniture manufacturer.While dealing with one of the vendors,he successfully negotiated the prices for items A and B.However,the vendor was firm on the price that he quoted for item C.Robert unsuccessfully insisted on a getting a discount for C also and eventually declined all the purchase terms offered by the vendor.Which of the following,if true,would contradict the reflection that Robert was engaged in a reactive devaluation?
A) The price quoted for C was much higher than the market price.
B) The vendor had not established a strong relationship with the manufacturer.
C) The vendor was directly procuring the item C.
D) The vendor had offered a lower price during an earlier purchase.

Question

Quizplus · Accepted Answer

Reactive devaluation occurs when a proposal is devalued simply because it comes from an adversary. If the price quoted for C was much higher than the market price, Robert's refusal to accept the terms would be based on an objective assessment of the price rather than a bias against the vendor's proposals, contradicting the notion of reactive devaluation.

Robert Was the Purchase Agent of an Office Furniture Manufacturer