Bargaining power of customers is high if:

A) Differentiation of competitors product is low B) Switching costs are low for substitute products C) The buyer has little information about the market D) The buyer requires a high quality product for own production

Answer & Solution

Correct Answer: Option A

Bargaining power of customers is high if Differentiation of competitors product is low. The Bargaining Power of Buyers, one of the forces in Porter's Five Forces Industry Analysis Framework, refers to the pressure that customers/consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.

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Biju Pillai 3 years ago

Answer B, also fit for the answer to the given question.
The fact of differentiation of competitors product give a chance to the customer to switch to any of the competitors product in the market. The intend of such decision definitely because of the reason of low switching cost. So, which is answer choice is more fit ? Hope somebody will clarify my doubt.

Faizan Ahmed 5 years ago

I guess option B is correct

Dark Lord 8 years ago

I think answer is B

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