Problem 1: With regard to the cost-based price model of negotiation strategy, which of the following is true?
- Potential vendors each submit quotations as to price, delivery, and so on.
- Prices are based upon vendor costs.
- Prices float based on what the customer is willing to pay.
- Prices are based in some way upon market standards agreed to by both vendor and purchaser.
Problem 2: The term vertical integration means to:
- produce goods or services previously purchased.
- develop the ability to produce the specified good more efficiently.
- sell all products to every member of your customer chain simultaneously.
- develop the ability to produce products that complement or supplement the original product.