A) collecting business intelligence
B) decreasing entry barriers
C) purchasing a substitute product
D) increasing buyer power
283) What are costs that make customers reluctant to switch to another product or service?
A) support activities
B) switching costs
C) loyalty rewards
D) value chain activities
284) Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called the Edgewater Café. Each time a customer purchases their 100th cup of coffee at the Edgewater Café, they receive a free pound of coffee of their choice. What is Callie attempting to create with her unique “Free Pound of Coffee” marketing program?
A) reducing buyer power with a loyalty program
B) increasing buyer power with a loyalty program
C) decreasing supplier power with a differentiated product
D) creating a substitute product
285) What includes all parties involved, directly or indirectly, in obtaining raw materials or a product?
A) support chain
B) supply chain
C) system chain
D) supply choice
286) Which of the below represents a company in a supply chain?
A) customer and competitor
B) supplier and competitor
C) knowledge worker and supplier
D) supplier and customer
287) In the center of Porter’s Five Forces Model is competition. Which of the below represents the four outer boxes?
A) buyer power, systems power, threat of false entrants, and threat of substitute products or services
B) buyer power, systems power, threat of new entrants, and threat of substitute products or services
C) buyer power, supplier power, threat of new entrants, and threat of substitute products or services
D) business power, supplier power, threat of new entrants, and threat of powerful services
288) Shawn McGill is on the executive board for ABC Pharmaceuticals. The company produces the top-selling cancer-fighting drug on the market. Due to its incredible success, ABC Pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC Pharmaceuticals using to increase its drug price?
A) supplier power
B) buyer power
C) threat of false entrants
D) business power
289) What is one of the most common ways a company can decrease supplier power?