Question

Which of the following conditions acts to weaken buyer bargaining power?

A. when buyers are unlikely to integrate backward into the business of sellers
B. when buyers are well informed about sellers' products, prices, and costs
C. when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low
D. when buyers have the ability to postpone purchases if they don't like the prices offered by sellers
E. when buyers are few in number and/or often purchase in large quantities

Answer 1

Weakened buyer bargaining power is typically indicated by buyers' inability to backward integrate into the business of sellers, implying a dependence that limits their market influence. Option A is correct.

Step-by-step explanation:

The condition that acts to weaken buyer bargaining power among the options provided is A: When buyers are unlikely to integrate backward into the business of sellers. This situation implies a dependence on the sellers, where buyers have minimal leverage over the sourcing of products, potentially increasing their costs and reducing their ability to influence terms and prices. On the other hand, conditions where buyers are well informed, able to switch easily, able to postpone purchases, or are few in number making large purchases, would generally increase buyer bargaining power.