situations?

The bargaining power of buyers is likely to be high in relation to suppliers in which of the following

situations?
A . The buyer spend is a low proportion of the supplier’s revenue
B . The buyer does not have the option to make as an alternative to buy
C . The buyer demand is urgent and cannot be postponed
D . The buyer is large in size relative to the supplier

View Answer

Answer: D

Explanation:

The bargaining power of buyers increases when the buyer is large relative to the supplier. A large buyer can leverage its size to negotiate more favorable terms due to its significant impact on the supplier’s business. CIPS notes that a buyer’s size and purchasing volume are key factors that enhance its negotiating power in buyer-supplier relationships.