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What effect has the internet had on pricing power?
AIt has moved all pricing power to sellers of goods
BIt has delivered pricing power to buyers and sellers
CIt has removed pricing power from every party alike
DIt has moved all pricing power to the buyers of goods
Answer & Solution
Correct answer: B. It has delivered pricing power to buyers and sellers
1. The internet has delivered pricing power to both buyers and sellers.
2. Buyers gain because they can compare products and prices quickly and easily.
3. That comparison puts buyers in a better bargaining position.
4. Sellers gain because the same technology lets them collect detailed data on buying habits.
5. So neither side holds all the power and neither side has lost it.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.10 Trends in Developing Products and Pricing_
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