Under the Five Forces framework, how can the market power of customers impact a seller's profitability?
A)The market power increases the total number of customers, raising market demand.
B)The market power reduces the total number of customers, raising market demand.
C)They can raise the selling price sellers charge.
D)Customers with market power can use their leverage to lower the selling price that sellers charge.

Question

Quizplus · Accepted Answer

When customers have significant market power, they can use their leverage to negotiate lower prices from sellers, thereby reducing the profitability of the sellers. This can lead to reduced margins and lower profits for the seller, unless they can find a way to differentiate their offering or reduce their costs.

Under the Five Forces Framework, How Can the Market Power