A supplier gains power when the product is:
A)critical to the buyer, and switching costs are high.
B)relatively unimportant to the seller, and switching costs are low.
C)critical to the buyer, and switching costs are low.
D)relatively unimportant to the seller, and switching costs are high.

Question

Quizplus · Accepted Answer

A supplier gains power when the product is critical to the buyer, and switching costs are high. This is because the buyer is more dependent on the supplier and cannot easily switch to another supplier without incurring significant costs. This gives the supplier more bargaining power and allows them to set higher prices or dictate other terms of the relationship.

A Supplier Gains Power When the Product Is