BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Which of the following forces is commonly reduced through the use of a loyalty program? A reverse auction tends to lower buyer power.

Detailed explanation-2: -Therefore, various firms organize events like loyalty programs to interact and increase their customer’s loyalty to retain them and reduce the influence of buyer power on their business.

Detailed explanation-3: -Which of the following forces is commonly reduced through the use of switching costs? Customer power, supplier power, threat of products or services, threat of new entrants, and rivalry among existing competitors are all included in Porter’s Five Forces Model.

Detailed explanation-4: -What is Buyer Power? Buyers have the power to influence price and the quantity of products sold. Powerful buyers can bargain on volume or switching costs or they can find substitute products.

Detailed explanation-5: -For example, low buyer concentration, high switching costs, no threat of backward integration, less price sensitivity, uneducated consumers, consumers that purchase specialized products, and the absence of substitute products all indicate that buyer power is low.