The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following circumstance: A. If switching to competing brands or substitutes is expensive B. If consumers are knowledgeable of firms' strategic plans C. If consumers are informed about products, prices, and costs across countries D. If consumers are particularly important to the seller E. If consumer demand is rising
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C. If consumers are informed about products, prices, and costs across countries
D. If consumers are particularly important to the seller
YES. As having a complete information will allow for arbitrage between areas and if they are a big fish of the seller business the seller will be less likely to roll-over the consumer in negociation.
Explanation:
A. If switching to competing brands or substitutes is expensive
NO. If switching is expenses then, the exit-barrier is higer thus, less bargaining power as we are less likely to leave
E. If consumer demand is rising
NO. Is demand rises then the supplier will have bargain power as it has where to sale the product if we leave
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