Perfect Solutions is a manufacturer and distributor of chemicals in North America. It has its distributors to sell the chemicals to the end customers. Nancy Adams deals with its distributors. Bill “Hoot” Jernigan is its biggest distributor in Kansas, Missouri and some parts of Illinois. Nancy acquired a new distributor, Crago Chemicals in the same area, but it is not as big as Hoot. It underbid Hoot on Hannibal city contract by 10 percent and Hoot thinks that for this reason, Nancy offered it better price while she had quoted 5 percent more price than Hoot (Weitz, Castleberry, Tanner, 2007).
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