Buyers are likely to be powerful source under all the following circumstances except:
A) One (or very few) buyer purchases a large percentage of a firm's total sales
B) The buyer's purchases are a large portion of its costs
C) Switching costs are low
D) Backward integration is not possible

Question

Quizplus · Accepted Answer

Buyers are likely to be powerful when they are able to integrate backwards into the production process, which gives them greater control over their suppliers. Therefore, if backward integration is not possible, the buyer's power is limited. A, B, and C are all circumstances where buyers have significant power over suppliers.

Buyers Are Likely to Be Powerful Source Under All the Following