The success of buyers in their bargaining efforts is more when:
A)the switching cost is high.
B)the threat of backward integration is absent.
C)the extent of buyer concentration is high.
D)the bargaining power of suppliers is high.

Question

Quizplus · Accepted Answer

When the extent of buyer concentration is high, this means that there are fewer buyers in the market, and these buyers have relatively greater negotiation power with suppliers. They can negotiate lower prices and better terms from suppliers. This is because if suppliers lose significant business from one of these buyers, it will have a greater impact on their overall revenue. Hence, the success of buyers in their bargaining efforts is more when the extent of buyer concentration is high.

The Success of Buyers in Their Bargaining Efforts Is More