DAYA TAWAR KONSUMEN YANG MENINGKAT: TANTANGAN BARU BAGI PRODUSEN

Abstract

Bargaining power of buyers refers to the relative strength of buyers relative to producers' offers. This is usually related to the price and quality of the product. Buyers here can refer to end users, namely individual customers who consume the product or intermediaries, namely those who distribute industrial products to end users, such as retailers and wholesalers. The bargaining power of buyers is one of the important forces that influences the profitability of an industry, as explained in Porter's Five Forces model. Powerful buyers can force prices down or demand better product quality and service. By lowering prices and raising costs, powerful buyers can squeeze profits from an industry. Conversely, when buyers are in a weak bargaining position, producers in an industry can raise prices and possibly reduce their costs by lowering product quality and service. This can ultimately increase the industry's profit levels. Manufacturers can reduce buyer power by increasing product differentiation, offering loyalty programs, or creating products that have unique value that is difficult to find elsewhere. Additionally, building strong relationships with customers can also help reduce pressure from buyers.