Type of auction in which the roles of buyers and sellers are reversed.
Sellers compete to obtain business, and prices typically decrease over time.
sells a products where there is a clear industry specification for the item and recognised quality standards
chooses the supplier and the manufacturer.
the after purchase service is minimal or very unlikely.
the required item is difficult to find.
The company selects generic categories such as hotels or flights. It then negotiates with a number of suppliers who would be interested in selling to company’s customers. To give supplier flexibility, the companies usually has restrictions on buyers or the product. For example, with travel tickets it does not allow users to use frequent flyer programmes, select a preferred airline, or receive refunds.