Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to consumer's and supplier's ________ (e.g., those expenditures tailored to a particular company and value chain partner).
A) leverage ability
B) logistics channel
C) liquidity situation
D) specific investments
E) independent operations

Question

Quizplus · Accepted Answer

Specific investments are expenditures tailored to a particular company and value chain partner, such as investments in specialized equipment or training programs. When there is vertical coordination, these specific investments may increase, which can increase the risk to both consumer and supplier if the relationship were to end.

Vertical Coordination Can Facilitate Stronger Customer-Seller Ties but at the Same