When the Arizona grocery store chain,Smitty's,told Associated Grocers (AG)to give them a bigger price discount or they would open their own warehouse and distribution center,AG listened because Smitty's was a big customer.This is an example of the

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This scenario illustrates the bargaining power of buyers because Smitty's is leveraging their position as a big customer to negotiate a better price with AG. The threat of opening their own warehouse and distribution center gives them more bargaining power in this situation.

When the Arizona Grocery Store Chain,Smitty's,told Associated Grocers (AG)to Give