Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when
A)virtually all buyers have strong brand attachments and are highly brand loyal.
B)demand for the product is growing rapidly.
C)sales are made to buyer groups with either strong bargaining power or high sensitivity.
D)sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers.
E)buyers are very quality conscious.

Question

Quizplus · Accepted Answer

When sales are made to buyer groups with either strong bargaining power or high sensitivity, the collaborative relationship between sellers and buyers can represent a strong competitive pressure. In such cases, buyers may require lower prices, better quality, faster delivery or other concessions, which can force sellers to innovate and improve their offerings to stay ahead of the competition. This can create a cycle of continuous improvement and innovation, which benefits both buyers and sellers in the long run.

Collaborative Relationships Between Particular Sellers and Buyers in an Industry