One of the most important steps in preparing for negotiations is to appraise the relative...

Vendor: CIPS
Product: L4M5
Update on: Oct 20, 2025
Questions: 373

CIPS L4M5 Question Answer

One of the most important steps in preparing for negotiations is to appraise the relative power of the parties. The buying organisation must assess its bargaining power against that of the supplier it intends to negotiate with. This information is necessary in facilitating the preparation, the negotiation team and the negotiation strategy.

In what situation is the bargaining power of buyers likely to be high relative to suppliers?

The supplier’s product is critical to the buyer’s business

There are fewer buyers relative to suppliers

The buyer’s requirement is urgent and cannot be postponed

There are few suppliers relative to buyers