In which of the following circumstances are competitive pressures associated with the bargaining power of buyers relatively moderate-to-weak? The supply of soccer balls increases during the World Cup season. Apple designs and manufactures its chip processors rather than buying them from Intel. Buyers tend to delay purchases of luxury goods, such as home entertainment systems, until they are on sale. Dairy products are usually standardized and therefore differentiated only by price. Consumers can easily compare different smartphones' features over the Internet before buying them.

Question

Jacob Hayden

Business

6 June, 21:17

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers relatively moderate-to-weak? The supply of soccer balls increases during the World Cup season. Apple designs and manufactures its chip processors rather than buying them from Intel. Buyers tend to delay purchases of luxury goods, such as home entertainment systems, until they are on sale. Dairy products are usually standardized and therefore differentiated only by price. Consumers can easily compare different smartphones' features over the Internet before buying them.

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Eliana Kirk · Answer 1

The supply of soccer balls increases during the World Cup season

The price-elasticity during that period is low thus, the price increase as a result.

Dairy products are usually standardized and therefore differentiated only by price.

Moderate as consumer can decide but will more likely buy from popular brands

Apple designs and manufactures its chip processors rather than buying them from Intel.

The seller (Intel) isn't conviced by the consumer (Apple) therefore, the bargain power of the consumer isn't as strong to force the seller to provide.

Explanation:

Buyers tend to delay purchases of luxury goods, such as home entertainment systems, until they are on sale.

Strong bargaining power as they can wait while company's need to sale their produciton to avoid inventory cost and to generate cashflows.

Consumers can easily compare different smartphones' features over the Internet before buying them.

The bargaining power is good as the customer has complete information and can arbitrage betwene models with similar characteristics for the lower cost.