Buyer power is a sum total of the working of the competition present in the market. When the buyer power is likely to be strong, it induces increase in the competitive forces as the same is likely to induce the players in the market to indulge in innovation and overall working management of the market. There is a need to have connection between the presence of strong buyer power and the development of the norms of competition in the market.
Buyer power is a significant area of information for the management of the competition in the industry. Certain factors like the age, language, geographical locations, etc of the buyer impact the overall management of the buyer power. The need to have strong buyer power for the management of the consumers and competitive forces is important for the management of conflicts of interest in the financial sector. Such kind of factors impact the development of the market competition as consumers and their choices influence the management of the operations of the companies. These companies have to tinker their operational and strategic decisions on the basis of their response towards the management. Also, the needs and preferences of the consumers need to be undertaken for the purpose and clarity of the consumer needs by the banking market players. As there is a significant amount of focus on the overall working of the buyer power, the companies are likely to make suitable changes to accommodate the preferences of the consumers. This suggests that buyer power brings changes in the working style and strategies of the companies in the market (Inderst & Ottaviani, 2012).