BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Bargaining power of buyers refer to the potential of buyers to bargain down the prices charged by the firms in the industry or to increase the firms cost in the industry by demanding better quality and service of product.

Detailed explanation-2: -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.

Detailed explanation-3: -The correct answer is true The bargaining power of the buyers helps in attaining good quality products or services from the companies at the lowest possible prices. They have strong bargaining power if they find the quality of the products or services does not match with standards.

Detailed explanation-4: -Bargaining power of customers also depends on the flexibility of bargaining approach. For example a customer wants to buy a product only when the supplier would give discount but the supplier has a fixed price tag for that product and is not ready to provide any sort of discounts.

Detailed explanation-5: -The customers have tons of power when there aren’t many of them and when the purchasers have many alternatives to shop for from. Hence, companies can take measures to reduce buyer power by for example implementing loyalty programs or by differentiating their products and services.