The bargaining power of the buyer is greater than that of the supplier when
A) volume of purchase is low.
B) the buyer profit margin is low.
C) cost savings from the supplier's product are minimal.
D) threat of backward integration by buyers is low.

Question

Quizplus · Accepted Answer

A buyer group is powerful when it is concentrated or purchases large volumes relative to seller sales, it earns low profits, or the buyers pose a credible threat of backward integration.

The Bargaining Power of the Buyer Is Greater Than That