A buyer cooperative is a type of online purchasing agent that brings buyers together for the purpose of buying in larger quantities and, thus, reducing prices.
A cooperative refers to a legal entity generally formed by individuals with similar motives or interests, such as suppliers, buyers, or customers, for reducing costs, and gaining economic power. A cooperative has an unlimited life span, limited liability, an elected board of directors, and controlling staff. The member-owners distribute all profits among themselves in proportion to their contributions.
From the above definition of the cooperative, we can easily find out the definition of a buyer cooperative. It refers to a legal entity generally formed by buyers with similar motives or interests, such as for reducing costs and gaining economic power. As mentioned in the former definition of this term, it is an online purchasing agent.
According to openstax.org, a buyer cooperative indicates-“A group of cooperative members who unite for combined purchasing power.”
Use of the term in Sentences:
- Buyer cooperative unites the buyers to conserve their purchasing rights to buy in large quantities and in reduced prices.
More from this Section
- Experiential marketing
Experiential marketing - This technique gets the consumer involved in the product to create ...
- Internal databases
Internal databases are electronic collections of consumer and market information obtained ...
- Relative pricing
Relative pricing is a decision to set prices above the competition, below the competition, ...
- Factory outlet
Factory outlet is an off-price retailing operation that is owned and operated by a manufacturer ...
Consists of the actors close to the company that affect its ability to serve its customers ...