Mary is purchasing air tickets for traveling to Europe in the December holidays. She books a ticket for $700 roundtrip with Delta Airlines to France but the next day her colleague informs her about a connection using two different airline service providers AirFrance and RyanAir which takes a shorter time and has no switching costs. She quickly changes her booking to the new connection her colleague showed her. What does this tell you about the bargaining power of buyers in the airline industry

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15-03-2022
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Mary is purchasing air tickets for traveling to Europe in the December holidays. She books a ticket for $700 roundtrip with Delta Airlines to France but the next day her colleague informs her about a connection using two different airline service providers AirFrance and RyanAir which takes a shorter time and has no switching costs. She quickly changes her booking to the new connection her colleague showed her. What does this tell you about the bargaining power of buyers in the airline industry

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jayilych4real jayilych4real · Answer 1 · 2022-03-18T10:50:37+01:00

The thing which can be noted about the bargaining power of the airline industry is that it is high.

What is Bargaining Power?

This refers to the ability of a firm to have some measure of influence over another through its power of labor.

With this in mind, we can see that based on the given situation of Mary buying tickets to travel, she has different choices to make based on the pricing system and this shows that the buyer's bargaining power is high.

Read more about bargaining power here:
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