Buyer bargaining power is strong whenMultiple choice question.demand is weak.buyers make purchases in small quantities.buyers place high importance on brand reputation.the cost of switching to a competing brand is high.

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?Question 3AnswerA.Some buyers are a threat to integrate backward into the business of sellers and become an important competitor.B.Buyers are small and numerous relative to sellers.C.Buyers have considerable discretion over whether and when they purchase the product.D.Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs.E.The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.

Factors that weaken rivalry among competing sellers includeMultiple Choicelow buyer switching costs.slow growth in buyer demand.rapid growth in buyer demand, high buyer costs to switch brands, and so many industry rivals that any one company’s actions have little impact on the businesses of its rivals.standardized or else weakly differentiated products among rival sellers.the presence of one or more rivals that are dissatisfied with their current position and market share.

Buyers with strong bargaining power can limit the industry profitability by Multiple select question.demanding additional features and services.demanding high volume of product.demanding price concessions.demanding better payment terms.

Buyer bargaining power is moderate-to-weak in which of the following scenarios?Multiple ChoiceApple designs and manufactures its own microprocessors for mobile devices rather than buying them from Intel or Qualcomm.Yogurt and products made from yogurt are highly differentiated by origin and by price.Buyers tend to delay purchases of luxury goods, such as OLED and 4K television sets, until they are on sale.Consumers can easily compare different fitness clubs and gyms over the Internet before signing up for memberships.The supply of soccer balls increases during the World Cup season.