Q28
Bargaining power of customers is high if:
A.
Differentiation of competitors product is low
AnswerB.
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: Option A
Solution
Answer: Option A
Solution:
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.