The Role of Buyer Sophistication in Competitive Bidding

The competitive bidding process is the method by which firms efficiently and effectively make purchases for necessary goods and services at a desired level of quality. Those firms with managers who understand the competitive bid process and are sufficiently sophisticated with regard to its implementation can create a tremendous competitive advantage in the marketplace. Explains the concept of buyer sophistication in terms of the skills necessary for successful competition in markets heavily influenced by the competitive bid process. Places particular emphasis on how the seller must map the sophistication level of the buyer in order to determine the most appropriate sales and negotiation strategy.