Michael Porter Defined the Five Forces Model and the Potential

question 165

Multiple Choice

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

• A) Suppliers can drive down profits by charging more for supplies
• B) New market entrants can steal potential investment capital
• C) Substitute products can steal customers
• D) Competition can steal customers

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Definitions:

Balance Theory

A theory in social psychology suggesting that people strive for balance in their relationships and beliefs for cognitive consistency.

Pitchman

A person who promotes and sells a product or service, often using persuasive or catchy pitches, traditionally in a live setting but also often through media.

Balance Theory

A psychological theory suggesting that individuals strive for harmony in their relationships and opinions, leading to changes in attitudes when imbalances occur.

Behavioral Intentions

An individual's planned or anticipated actions in a given situation, often studied in psychology and marketing as precursors to actual behavior.