Willoughby Inc

question 17

Multiple Choice

Willoughby Inc.,a large chain of superstores,sources its products from thousands of suppliers who have limited product differentiation.The products stored at the superstores are also available at smaller convenience stores with a marginal price differentiation.In this case,which of the following competitive forces is most likely to be a threat to the company?

• A) threat of substitutions
• B) bargaining power of suppliers
• C) threat of new entrants
• D) bargaining power of customers

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Definitions:

Compliance

Changing one’s behavior as a result of other people directing or asking for the change.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.

Altruism

Prosocial behavior that is done with no expectation of reward and may involve the risk of harm to oneself.

Obedience

Changing one’s behavior at the command of an authority figure.