Competitive pressures stemming from buyer bargaining power tend to be weaker when
A) the number of buyers is small,such that each customer's business tends to be particularly important to a seller.
B) buyer demand is growing slowly or maybe even declining.
C) the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.
D) buyers are well informed about sellers' products,prices,and costs.
E) the buyer group consists of a few large buyers,and the seller group consists of numerous small firms.

Question

Quizplus · Accepted Answer

When the costs incurred by buyers in switching to competing brands or to substitute products are relatively high, buyers are less likely to exercise their bargaining power as it would be more expensive for them to do so. This reduces competitive pressures on sellers.

Competitive Pressures Stemming from Buyer Bargaining Power Tend to Be