The Bargaining Leverage of Suppliers Is Greater When

question 107

Multiple Choice

The bargaining leverage of suppliers is greater when

• A)the suppliers' products/services account for a small percentage of industry members' costs.
• B)industry members incur low costs in switching their purchases from one supplier to another.
• C)industry members account for a big fraction of supplier's sales.
• D)there is extensive seller-supplier collaboration.
• E)the supplier industry is composed of a large number of relatively small suppliers.

---

Definitions:

Product

An item or service offered by a company to customers, which can be physical (goods) or intangible (services).

RedMax Brand

A brand known for its outdoor power equipment, such as leaf blowers, trimmers, and chainsaws, targeting both professional and residential use.

Demonstration

A visual or practical presentation of how a product works or how a service is performed to illustrate its benefits.

Complimentary

Refers to something provided for free or at no cost as a courtesy or bonus.