Explain why low switching costs and weakly differentiated products tend to give buyers a high degree of bargaining power.
What will be an ideal response?
Switching costs put a cap on how much industry producers can raise prices or reduce quality before they will lose the buyer's business. When industry goods are standardized or differentiation is weak, buyers make their selections on the basis of price, which increases price competition among vendors.
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Harrison Industries produces 4,00 . lunch boxes each day. The average number of units in work in process is 12,000 . having an average cost of $60,000 . The annual carrying costs related to inventory are 10%. Consultants have determined that the work in process could be reduced by as much as a third by rearranging the factory floor. What would the throughput time be if Harrison implements the
recommended changes? a. Twelve hours b. One day c. Two days d. Three days
Break-even sales volume in units is determined by:
a. Dividing the fixed cost by the difference between the unit selling price and unit variable costs. b. Subtracting the fixed cost from the contribution margin. c. Dividing the fixed cost by the unit selling price. d. Subtracting the variable cost per unit from the unit selling price.
Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition.
A) more-for-more B) more-for-the-same C) more-for-less D) all-or-nothing E) same-for-less
Describe the types of details needed and the tone to use in a persuasive claim letter