Editing Porter's five forces analysis (section)

=== Bargaining power of customers ===
The bargaining power of customers is also described as the market of outputs: the ability of customers to put the [[firm]] under pressure, which also affects the customer's sensitivity to price changes. Firms can take measures to reduce buyer power, such as implementing a loyalty program. Buyers' power is high if buyers have many alternatives. It is low if they have few choices.

Potential factors:
* Buyer concentration to [[firm]] [[concentration ratio]]
* Degree of dependency upon existing channels of distribution
* Bargaining leverage, particularly in industries with high [[fixed cost]]s
* Buyer switching costs
* Buyer information availability
* Availability of existing substitute products
* Buyer [[price sensitivity]]
* Differential advantage (uniqueness) of industry products
* [[RFM (customer value)]] Analysis