Question

In: Economics

Buyers are powerful when: A. there is not a threat of backward integration. B. they are...

Buyers are powerful when:

A. there is not a threat of backward integration.

B. they are not a significant purchaser of the supplier’s output.

C. there are no switching costs among brands they purchase.

D. the buyers’ industry is fragmented.

Solutions

Expert Solution

Answer is option c

If consumer will not pay any switching cost then the consumer power will be higher and consumer can switching different brands easily, there are many types of switch cost- some of monitory based which impact higher, and some of psychology and mentally and time related switching cost.

All other Answers are wrong because no one fit's the scinario to powerful buyer

Rahul Sunny answered 2 years ago
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