Explain the power of buyers. What will be an ideal ...

[khang]

Explain the power of buyers.
 
  What will be an ideal response?

Question 2

A ________ is a request sent to software vendors describing a new system that an organization requires in broad, high-level terms, to which interested vendors can respond by describing the products and services that could fit the requirement.
 
  A) request for proposal
  B) request for information
  C) request for quotation
  D) request for tender

[Fayaz00962]

Answer to Question 1

The power of buyers increases when they have leverage over suppliers and can demand deep discounts and special services. If a supplier has a small number of buyers, the supplier is at a disadvantage since losing even one could be devastating. Buyer power also rises when many suppliers offer similar, undifferentiated products and the buyer can deal with any of them to get about the same product, with negligible switching costs.

Answer to Question 2

B