The bargaining power of buyers is moderately strong. This is why car manufacturers focus on building customer loyalty through design, quality and by offering competitive prices. A large number of the buyers are the small individual buyers that buy single vehicles. However, there are corporations and government agencies that buy fleets of vehicles and have the position to bargain for lower prices. Generally, the switching costs in the automotive industry are low. The buyers are price sensitive mostly and none of the buyers pose a threat of backward integration. Please choose an answer: True Not correct
The bargaining power of buyers is moderately strong. This is why car manufacturers focus on building customer loyalty through design, quality and by offering competitive prices. A large number of the buyers are the small individual buyers that buy single vehicles. However, there are corporations and government agencies that buy fleets of vehicles and have the position to bargain for lower prices. Generally, the switching costs in the automotive industry are low. The buyers are price sensitive mostly and none of the buyers pose a threat of backward integration. Please choose an answer: True Not correct
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Is the following statement correct?
The bargaining power of buyers is moderately strong. This is why car manufacturers focus on building customer loyalty through design, quality and by offering competitive prices. A large number of the buyers are the small individual buyers that buy single vehicles. However, there are corporations and government agencies that buy fleets of vehicles and have the position to bargain for lower prices. Generally, the switching costs in the automotive industry are low. The buyers are price sensitive mostly and none of the buyers pose a threat of backward integration.
Please choose an answer:
True
Not correct
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