In Which One of the Following Instances Is Suppliers' Bargaining

question 79

Multiple Choice

In which one of the following instances is suppliers' bargaining power and leverage not weakened?

• A)When industry members pose a credible threat of backward integration into the business of suppliers
• B)When the cost of switching from one supplier to another is low
• C)When the buying firms purchase in large quantities and thus are important customers of the suppliers
• D)When the item being supplied is a commodity
• E)When the items purchased from suppliers are in short supply

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Definitions:

Understanding

The ability to grasp the meaning, significance, or nature of something.

Reward

A benefit, recognition, or compensation given for the completion of a task or achievement.

Behavior

Describes the actions or reactions of an entity (typically a person or an animal) in response to external or internal stimuli.

Principle Of Scarcity

A tactic used in negotiation and persuasion suggesting that a product, resource, or opportunity is limited in availability, thereby increasing its desirability.