Question

The bargaining power of buyers tends to be weaker when: Group of answer choices a) buyer demand is growing slowly or maybe even declining. b) buyers are well informed about sellers' products, prices, and costs. c) the number of buyers is small, such that each customer's business tends to be particularly important to a seller. d) the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.

Answer 1

Answer:

d) the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.

Explanation:

Bargaining power dictate the power that both the buyers and sellers have when influencing a deal so it goes to their favor. When the bargaining power of the buyers increase, the bargaining power of the sellers would be decreased and vice versa.

When the costs incurred by buyers in switching to other competitors are relatively high, The Sellers will have more bargaining power since they know that the buyers need to make a large economic sacrifice if they decided to not buying their products.

This means that the buyers bargaining power will become weaker, and they have to conform to the terms set by the sellers.