What does increased bargaining power of customers typically lead to?

Increased bargaining power of customers often leads to higher standards for quality in products. When customers have more power, they can demand better quality, improved features, and superior service. This pressure forces businesses to enhance their offerings to meet customer expectations and remain competitive in the marketplace. Companies may invest in research and development, improve their manufacturing processes, or focus on customer feedback to ensure that their products align with what consumers want.

As customers become more aware of their choices and can influence market trends through their collective demands, businesses are incentivized to maintain high quality in order to attract and retain clientele. This dynamic not only benefits consumers through improved products but also encourages innovation and competition among businesses striving to meet elevated consumer standards.