A Buyer Will Have Less Bargaining Power If All of the Following

question 35

Multiple Choice

A buyer will have less bargaining power if all of the following factors apply except

• A) buyers have limited information.
• B) buyers face few switching costs.
• C) the products purchased are highly differentiated and unique.
• D) buyers do not have the ability to manufacture the products.
• E) buyers purchase small volumes of the products.

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Definitions:

Compensation Scheme

a structured plan designed by organizations to determine and provide salaries, bonuses, benefits, and incentives to employees.

Target Based Pay

Target based pay is a compensation strategy that ties an employee's earnings directly to the achievement of specific performance targets.

Straight Line Pay

A compensation method where employees are paid a fixed salary or wage, without variations for overtime or performance.

Managers' Incentives

Incentives designed to motivate managers to act in the best interest of the stakeholders, often linked to performance metrics or company goals.