Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of
A)the speed with which general economic conditions and interest rates are changing.
B)the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members.
C)how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers.
D)the number of buyers versus the number of sellers.
E)whether industry members are spending more or less on advertising.

Question

Quizplus · Accepted Answer

The strength of buyer-seller relationships in an industry depends on whether the buyers have enough bargaining power to influence sale conditions in their favor and whether strategic partnerships between industry members create adverse effects for others. The other options such as economic conditions, number of buyers/sellers, and advertising spending do not directly impact the strength of these relationships.

Whether Buyer-Seller Relationships in an Industry Represent a Strong or Weak