The higher the switching costs for industry members,the more it can:
A) limit supplier bargaining power.
B) provide a stronger bargaining power for suppliers.
C) enhance the quality of parts and components being supplied,and in effect reduce defect rates.
D) provide important cost savings for the collaborative supplier-seller relationship.
E) All of these.

Question

Quizplus · Accepted Answer

Higher switching costs for industry members can limit supplier bargaining power because suppliers will be less likely to increase prices or offer unfavorable terms if they know the industry member will have difficulty finding a new supplier.

The Higher the Switching Costs for Industry Members,the More It