Which of the following does not contribute to buyers' bargaining power?
A)Low switching costs for buyers
B)The size of buyers relative to that of sellers
C)A high level of differentiation among the products that buyers purchase
D)The ability of buyers to backward integrate

Question

Quizplus · Accepted Answer

A high level of differentiation among the products that buyers purchase actually increases buyers' bargaining power as it gives them more options to choose from and puts pressure on sellers to differentiate their products and compete on price. A, B, and D all contribute to buyers' bargaining power as low switching costs give buyers the ability to easily switch to competing products, a larger buyer size relative to sellers gives buyers more leverage in negotiations, and the ability to backward integrate gives buyers the ability to produce their own inputs and reduce their dependence on sellers.

Which of the Following Does Not Contribute to Buyers' Bargaining