Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:
A) there are relatively few firms supplying the industry compared to the number of buyers.
B) the good or service purchased by the buyers represents a negligible percentage of the buyer's costs.
C) the industry's goods or services are standardized or undifferentiated.
D) buyers face high switching costs in changing vendors.
E) the good or service is of significant importance to the quality or price of the buyer's offerings.

Question

Quizplus · Accepted Answer

When goods or services are standardized or undifferentiated, buyers can easily switch between suppliers, increasing their bargaining power.

Buyers Are More Likely to Be Powerful Relative to the Firms