Active Monitoring of the Supply Market Scale

What it measures

Measures the extent to which a buying firm actively monitors alternative suppliers' products and prices, employs competitive bidding, and maintains multiple supply sources. Higher scores indicate a more adversarial, market-based purchasing orientation rather than a collaborative single-source approach.

Representative items

• We usually get more than one bid when we purchase this product.
• We often check the price and quality of other vendors of this product.

Citation

Cannon, J.P. & Homburg, C. (2001). Buyer–supplier relationships and customer firm costs. Journal of Marketing, 65(1), 29–43.