0406

Problem

Concerning buyer-seller relationships, compare and contrast the features of a collaborative relationship versus a transactional relationship in the business market. Describe how the operational linkages might differ by relationship type.

Step-by-step solution

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Step 1/3

Buyers and sellers often have different relationships as they enter into business transactions. This is mainly based on the market conditions and the characteristics of the purchase situations.

Step 2/3

The two buyer-seller relationships often discussed are transactional relationships and collaborative relationships. These two terms are compared and contrasted as below.

Step 3/3

The main difference between the relation type and operational linkage is as follows. Operational linkage focuses and reflects on how the system, routines, and buying behavior of buyers and sellers are connected that facilitate the operations. The exchange of information is not considered in this contest. However, in the case of relationship type, it explains how the operational linkage stimulates mutual commitments. Relationship type explains the commitment that seller and buyer may have with each other. Further, the trust one party has for another one is also discussed in relation to types.