According to Porter's Five Forces Model, a Frequent Traveler's Choice

question 83

Multiple Choice

According to Porter's five forces model, a frequent traveler's choice of auto rental would be an example of a strong force for ________.

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

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Definitions:

Product Cost

The total expenditure incurred to produce, acquire, and sell products, including direct materials, direct labor, and overhead.

Period Cost

Overheads not directly linked to production, charged as expenses in the timeframe they happen.

Direct Materials

The raw materials directly used in the manufacturing of a product, easily traceable to the finished good.

Product

An item or service created through a process and offered in the market to satisfy consumer needs or wants.