Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the ________.
A)threat of new entrants to the industry
B)rivalry among companies competing in the industry
C)bargaining power of suppliers
D)bargaining power of buyers

Question

Quizplus · Accepted Answer

Switching costs and the number of buyers are key considerations for the bargaining power of buyers. If the items represent a relatively small portion of the cost of finished products, this may weaken their bargaining power as it may be less impactful for them to switch suppliers or negotiate lower prices.

Switching Costs, the Number of Buyers, and If the Items