Competitive pressures stemming from buyers' bargaining power tend to be weaker when
A)the number of buyers is small,such that each customer's business tends to be particularly important to a seller.
B)buyer demand is growing slowly or maybe even declining.
C)the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.
D)buyers are well informed about sellers' products,prices,and costs.
E)the buyer group consists of a few large buyers and the seller group consists of numerous small firms.

Question

Quizplus · Accepted Answer

When the costs incurred by buyers in switching to competing brands or to substitute products are relatively high, buyers will be less likely to switch and will have less bargaining power with the seller. This is because they would have to incur significant costs to switch to another supplier or product, making it less likely that they will be able to find a more favorable deal elsewhere. This gives the seller more pricing power and reduces the competitive pressure from buyers.

Competitive Pressures Stemming from Buyers' Bargaining Power Tend to Be