Reduced prices,need for increased quality,and demand for more services from a firm would result due to ________.
A) high threat of substitute products from other industries
B) high customers' bargaining power
C) high threat of new entrants into the market
D) traditional rivals within the industry
E) increased suppliers' bargaining power

Question

Quizplus · Accepted Answer

When customers have high bargaining power, they have greater leverage to demand lower prices, better quality, and more services from firms. This is because the firm needs to satisfy the customers in order to retain them and avoid losing them to competitors. This in turn can lead to reduced prices as a result of competitive pressures and increased demand for more services to cater to customer needs.

Reduced Prices,need for Increased Quality,and Demand for More Services from a Firm