The Buyer and Seller Power Indication in the Economy

Abstract

The article analyses the reasons and the consequences of the origin of buyer power, requiring the definition of the supply chain and the groups of the participants of the chain that are identified by a number of properties: the producers, whether or not having the buyer power and supplying in the wholesale market their production for economic entities engaged in retail trade; the traders, and the retail traders obtaining, for a number of reasons, the buyer power and benefiting from it. The third group of the market participants is represented by the ultimate consumers, who purchase the products in retail trade outlets. Therefore, most frequently, the three groups of market participants become the object of analysis, since one of the reasons that prompted interest in the buyer power is the growth of the trade networks and the enhancement of the impact produced thereby upon the operations of the producers of the goods. Furthermore, it is necessary to bear in mind that indications of buyer power have been also observable in other chains of goods supply, e.g., growers of the agricultural production, processors, etc.