Question

Chains can receive new items as soon as they are introduced, get proper service and selling support from suppliers, and obtain the best prices. These advatages refer to____.

a) economies of scale
b) a centralized organization
c) quanitiy discounts
d) bargaining power

Answer 1

d) bargaining power.

Step-by-step explanation:

Bargaining power is a situation in which on party has the influence over another. Buyer bargaining power refers to a situation in which buyer can exert a pressure on seller to provide better quality products at low prices.

The chains have advantage of bargaining power. The chains usually buy in bulk and make large purchases. They are strong buyers and has bargaining power over their suppliers. They can get proper services and selling support from its suppliers and get supplies at best available prices.