If a business is a large purchaser of a commodity product (less important to the buyer)and is in an industry in which switching costs are low,generally the supplier power ________.
A)is low
B)is high
C)is greater than customer buying power
D)is equal to customer buying power
E)is likely to increase with a decrease in switching costs

Question

Quizplus · Accepted Answer

If the commodity product is less important to the buyer and switching costs are low, the supplier power is likely to be low. The buyer can easily switch to another supplier without incurring significant costs or risks, which gives them more bargaining power and reduces the supplier's power.

If a Business Is a Large Purchaser of a Commodity