Bargaining power of buyers
A moderate to weak force
A moderate to weak force in terms of individual bargaining
power and leverage over the terms and conditions of sales.
Consumers as a group do have some ¡§bargaining power¡¨ in
the sense that if a chain/location is unable to attract a
sufficient volume of traffic and sales, it must respond by
improving the attractiveness of its product offering or go out
of business. There can be no denying that:
1. Fast-food consumers are price sensitive.
2. Fast-food consumers want convenience and are location sensitive.
3. Fast-food consumers are quality sensitive
4. Fast-food consumers switching costs are low.