Which of the following statements is true of buyer power?
A)If firms offer differentiated products, then buyers have increased power.
B)If firms cannot switch suppliers easily, then buyers have decreased power.
C)If buyers can easily switch firms, then buyers have increased power.
D)If buyers can switch to substitute products easily, then buyers have decreased power.

Question

Quizplus · Accepted Answer

If buyers can easily switch firms, it means they have a lot of alternatives to choose from, which increases their bargaining power. This ability to switch easily puts pressure on firms to meet buyers' demands, such as lower prices or higher quality, to retain them.

Which of the Following Statements Is True of Buyer Power