Asked by matheus castro on Jul 17, 2024
Verified
To decrease buyer power,the firm can
A) Differentiate its product
B) Decrease dependency on a single buyer
C) Sell its products in locations with multiple buyers
D) All of the above
Decrease Buyer Power
Strategies or market conditions that reduce the negotiation leverage of buyers, enhancing the seller's position.
- Recognize strategies to decrease buyer power and to command higher prices for products.
Verified Answer
AN
Aneesha NicholasJul 21, 2024
Final Answer :
D
Explanation :
By differentiating its product, the firm can make it more unique and reduce the bargaining power of buyers who may have limited alternatives. By decreasing dependency on a single buyer, the firm can spread the risk across multiple buyers, making it harder for any one buyer to exercise significant influence over the firm's pricing or product offerings. Selling products in locations with multiple buyers can also help reduce buyer power, as it increases competition among buyers and reduces the ability of any one buyer to exert significant influence over the supplier. Taken together, these strategies can help reduce buyer power and improve the firm's bargaining position.
Learning Objectives
- Recognize strategies to decrease buyer power and to command higher prices for products.