Consumers Are Increasingly Showing a Preference for Fulfilling Their Product

question 83

Multiple Choice

Consumers are increasingly showing a preference for fulfilling their product needs via smartphone applications and online shopping. The relative ease of creating a web-based storefront is posing a significant threat to brick-and-mortar retailers and driving many established retailers to close their doors. According to Michael Porter, this is an example of

• A) threat of new competitors.
• B) supplier power.
• C) buyer power.
• D) threat of substitutes.

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Definitions:

Option Clearing Corporation

The organization responsible for ensuring the proper settlement of options contracts and mitigating counterparty risk in the options market.

Post Margin

The amount of collateral a participant must deposit with a clearinghouse to cover potential future losses on positions.

Purchased

The act of acquiring ownership of an asset in exchange for payment.

Digital Option

A type of option that pays either a fixed amount of cash or nothing at all, depending on whether a certain condition is met at expiration.