In the Context of Porter's Five Forces Model, Customer's Bargaining

question 82

Multiple Choice

In the context of Porter's five forces model, customer's bargaining power refers to

• A) a customer's ability to create barriers to entry.
• B) a customer's ability to alter his/her value chain.
• C) a customer's ability to integrate IT.
• D) a customer's ability to negotiate better prices.
• E) a customer's ability to create substitutes.

---

Definitions:

Quantity Demanded

The quantity of a product or service that buyers are ready and capable of buying at a certain price.

Complements

Items or services that complement each other in such a way that a rise in demand for one results in a rise in demand for its counterpart.

Demand Curve

A graph that represents the relationship between the price of a good or service and the quantity demanded by consumers.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.