A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

This question relates to the supplier perception model, which assesses how a supplier views its customers based on the value of the business and the attractiveness of the account. A buying organisation with low spend offers little value. A reputation for paying late makes the account highly unattractive and difficult to manage. From the supplier's perspective, such a customer requires effort for little return and poses a credit risk. This combination places the buyer in the 'Nuisance' or 'Exploit' quadrant, where the supplier will invest minimal effort and may seek to exit the relationship. 'Nuisance' accurately reflects the low value and high hassle.

A. A 'Develop' customer has high potential attractiveness but currently low spend; a late payer is not attractive to develop.
C. A 'Core' customer represents high spend and high attractiveness, forming a strategic partnership with the supplier.
D. An 'Exploit' customer typically has high spend but is unattractive (e.g., highly demanding), allowing the supplier to maximise profit due to dependency. Low spend does not fit this category.

1. CIPS. (2018). Commercial Negotiation L4M5. Profex Publishing. Chapter 1, 'Commercial Relationships', Section: 'Supplier Positioning', pp. 20-22. (The model shows the 'Nuisance' quadrant is characterised by low spend value and low relationship attractiveness).

2. Van Weele, A. J. (2018). Purchasing and Supply Chain Management (7th ed.). Cengage Learning. Chapter 13, 'Supplier Relationship Management', Section: 'The Supplier's View of the Customer', p. 395. (Describes the customer segmentation matrix where low volume/low attractiveness customers are classified as 'Nuisance').