The Mifflin Cable store in Buffalo is currently offering a fabulous marketing strategy for potential new cable and Internet customers. Mifflin Cable offers new customers who purchase a cable and Internet package a DVR, modem, and all other necessary equipment with a two year contract. In terms of Porter's Five Forces what is Mifflin Cable attempting to achieve with this marketing strategy?
A) Increase buyer power
B) Increase substitute products
C) Decrease supplier power
D) Decrease buyer power

Question

Quizplus · Accepted Answer

Mifflin Cable's strategy of offering a DVR, modem, and necessary equipment with a two-year contract to new customers is aimed at decreasing buyer power. By locking customers into a two-year contract with the allure of free equipment, the company makes it harder for customers to switch to competitors, thus reducing their power in the market.

The Mifflin Cable Store in Buffalo Is Currently Offering a Fabulous