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Whole Foods Market

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The bargaining power of buyers
The bargaining power of consumers is strong in impacting Whole Foods Market. It refers to the effect of buyers on businesses. In Whole Foods Market’s case, the external factors that contribute to the strong bargaining power of customers are as follows, low switching costs, high quality of information, and small volume of individual purchases.
Most of Whole Foods Market’s customers are individuals whose purchases are low compared to the total revenues of the firm. However, it is easy for customers to move to other retailers, corresponding to the low switching costs. In addition, Whole Foods Market’s customers have access to information they can use to properly evaluate the company’s products. As a result, Whole Foods Market must address consumer concerns. Otherwise, they could move to other retailers. Whole Foods’ buyers are free to purchase products …show more content…

Power relationships with a company’s buyer are negotiated through the individual buyer who can affect the probability with low purchase prices. The buyer can directly influence what a company offers. Factors that influence a buyer are not limited to but include price, customer service, and the store environment. Whole Foods wants the customer to be able to stop and buy everything they need. They want their customers delighted and satisfied. The need for food won’t fall and consumers will sustain a demand for value pricing. Buyers of Whole Foods’ products are living a lifestyle that promotes health, living and moral philosophy that are conscious of the surroundings. Organics and products have been socially accepted. Willingness to buy is relatively moderate to high in the natural foods and organic industry making customers less price sensitive. As similar product are introduced by competitors (Wal-Mart, Target), there is a demand for value pricing and

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