A supplier gains power when the product is:
A)critical to the buyer, and switching costs are high.
B)relatively unimportant to the seller, and switching costs are low.
C)relatively unimportant to the seller, and switching costs are high.
D)critical to the buyer, and switching costs are low.

Question

Quizplus · Accepted Answer

A supplier gains power when the product is critical to the buyer because the buyer is dependent on the supplier for securing a constant supply of the item. Additionally, switching costs that are high make it difficult for the buyer to switch to another supplier, making the supplier more powerful.

A Supplier Gains Power When the Product Is