buyer concentration

Meanings

1. 1noununcountablebusinessspecialist

   The extent to which a small number of buyers account for most of the purchases in a market.

   Grammar: Uncountable; used with 'high', 'low', 'increase', 'reduce', etc. Do not use a plural form.

   Patterns

   • high/low buyer concentration
   • buyer concentration in a market
   • increase/reduce buyer concentration

   The report found high buyer concentration in the smartphone chip market, with just three companies placing most orders.

   Low buyer concentration means many different customers purchase from the suppliers, so no single buyer has much power.

   Regulators are concerned that rising buyer concentration could allow a few large retailers to dictate prices to farmers.

2. 2noununcountablebusinessspecialist

   A measure of how much purchasing power is held by the largest buyers in a particular industry or sector.

   Grammar: Uncountable; often used with 'measure', 'calculate', 'estimate' and 'level of'.

   Patterns

   • measure/calculate buyer concentration
   • level of buyer concentration
   • buyer concentration ratio

   Economists use the buyer concentration ratio to show what share of total purchases the top four customers represent.

   Before entering the market, the startup calculated buyer concentration to see whether a few large clients would control demand.

   A high level of buyer concentration can make it difficult for new suppliers to negotiate favorable terms.

Common combinations

high buyer concentration

High buyer concentration gives large customers more bargaining power.

low buyer concentration

Low buyer concentration means suppliers can sell to many different customers.

increase buyer concentration

Mergers among retailers can increase buyer concentration in the grocery sector.

reduce buyer concentration

Encouraging small businesses to buy together may reduce buyer concentration.

buyer concentration ratio

The buyer concentration ratio shows the market share of the largest purchasers.

level of buyer concentration

The level of buyer concentration varies widely between industries.

Synonyms and how they differ

purchasing concentration

A broader term that can refer to buyers or the act of buying; buyer concentration focuses specifically on the buyers themselves.

market concentration

Usually refers to sellers, not buyers; use buyer concentration when you mean the buying side.

Opposites

Word family

concentrated adjective

Describes a market where few buyers or sellers hold most of the power.

concentration noun

The general state of being gathered or focused in one place; used in many contexts beyond business.

Commonly confused: buyer concentration or supplier concentration?

Practice

Make it your own

Write a sentence using “buyer concentration”, then check it and compare it with the examples above.

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