MARKETING POLICIES AND BARGAINING POWER OF BUYERS SURVEY

The ultimate aim of industrial customers is to pay the lowest possible price to obtain the products or services that it uses as inputs. Usually, therefore the buyer's best interests are served if they can drive down profitability in the supplier industry. To accomplish this is buyers have to gain leverage over firms in the supplier industry.One way they can do this is to purchase in such large quantities that supplier firms depend on the buyers business for survival.

 Second, when the supplier's products are viewed as commodities that is as standard or undifferentiated buyers are likely to bargain hard for low prices since many firms can meet their needs. Buyers will also bargain hard when the supplier industry's products or services represent a significant portion of the buying firms costs. 

MARKETING POLICIES AND BARGAINING POWER OF BUYERS SURVEY

A fourth source of buyer power is the willingness and ability to achieve backward integration.
Nutrasweet is affected both positively and negatively by several of the factors associated with buyer bargaining power . Nutrasweet is used in over 5,000 products- a fact that diminishes buyer power by reducing the leverage associated with losing one or a few buyers. Journal of International Business Studies © 1982 Palgrave Macmillan Journals stated as One of the outcomes of negotiation between multinationals and host governments in developing countries-the extent of foreign ownership of subsidiaries-is influenced by the bargaining power of the two parties. Foreign ownership, measured in various ways, appears to be affected by the level of technology of the multinational, the degree to which a multinational attempts to differentiate its products, the extent to which a subsidiary's output is exported to other parts of the multinational, the diversity of products offered by the multinational, and the extent of competition by other multinationals.
The relationship between some of these variables and ownership is not a simple one. One variable that others have mentioned as probably affecting bargaining power-size of the investment in question-appears not to play a significant role in government policies toward ownership, but many large projects tend to be located in countries that have lenient ownership policies.