Customer bargaining power is likely to be relatively great under all of the following circumstances except when __________.
A) the customer purchases a large volume relative to the supplier's total sales
B) the product or service represents only a small expenditure by the customer
C) large customers pose a threat of backward integration
D) customers have readily available alternatives for the same service

Question

Quizplus · Accepted Answer

When the product or service represents only a small expenditure by the customer, the customer's bargaining power is typically lower because the cost is not significant enough to leverage negotiations.

Customer Bargaining Power Is Likely to Be Relatively Great Under