MENU
Which of the following will help the bargaining strength of a buyer?
The buyer has the option to make the product in-house
There are a limited number of suppliers available to the buyer
The buyer's switching costs are high
The buyer's spend is a high proportion of the supplier's revenue
Suggested Answer: C
Get Premium L4M2 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
1 (Make in-house): The ability to produce in-house reduces dependency on suppliers, strengthening buyer power.
4 (High spend proportion): A high proportion of spend gives buyers leverage over suppliers who are reliant on their revenue.
Limited suppliers (2) and high switching costs (3) reduce buyer bargaining power. Reference: CIPS Level 4, Market Power Analysis.
13 comments · newest first
DA
Dallas
11 months ago
1 and 4 seem like a solid combo for bargaining strength!
RY
Ryan
11 months ago
Limited suppliers? That's a red flag for buyers!
IZ
Izetta
11 months ago
Wait, how does high spend help? Sounds counterintuitive.
BE
Beckie
11 months ago
I disagree, high switching costs weaken the buyer's position.
JU
Jutta
11 months ago
Making in-house definitely boosts bargaining power!
SA
Sage
12 months ago
I’m leaning towards option B, but I’m a bit confused about how high switching costs affect the buyer's strength.
VI
Vilma
12 months ago
I practiced a question similar to this, and I feel like the buyer's spend being a high proportion of the supplier's revenue is a key factor.
JE
Jeffrey
1 year ago
I think the limited number of suppliers definitely weakens the buyer's bargaining power, but I can't recall how high switching costs play into this.
NA
Natalya
1 year ago
I remember discussing how having the option to make a product in-house can really strengthen a buyer's position, but I'm not sure about the other factors.
LO
Lorriane
1 year ago
I'm leaning towards option B, since having a limited number of suppliers and the buyer's spend being a high proportion of the supplier's revenue would both strengthen the buyer's position. The other factors don't seem as directly relevant to bargaining strength.
EM
Emily
1 year ago
Okay, I think I've got this. The key is to identify which factors would give the buyer more leverage in negotiations. Having the option to make the product in-house and the buyer's spend being a high proportion of the supplier's revenue - those seem like the strongest indicators of bargaining power.
ET
Ettie
1 year ago
Hmm, I'm a bit unsure about this one. The options seem to cover different aspects of the buyer-supplier relationship, but I'm not sure how to weigh them against each other. I'll need to think this through step-by-step.
DO
Dortha
1 year ago
This seems like a straightforward question about factors that influence a buyer's bargaining power. I'll need to carefully consider each option and how they would impact the buyer's position.