Which of the following is not descriptive of a high level of bargaining powers of buyers?
A) Changing suppliers costs very little.
B) Alternative suppliers are plentiful because of standardization of the product.
C) The purchased product represents a high percentage of buyer's costs.
D) The buyer buys a large proportion of the seller's product or service.
E) A buyer earns high profits and is very insensitive to costs and service differences.

Question

Quizplus · Accepted Answer

A high level of bargaining power of buyers is characterized by factors such as low switching costs, availability of alternative suppliers, high degree of dependence of the seller on the buyer, and price sensitivity of the buyer. However, a buyer earning high profits and being insensitive to costs and service differences indicates a low bargaining power, as the buyer is not as dependent on the seller and can afford to pay higher prices.

Which of the Following Is Not Descriptive of a High