Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start a Cookie Club that gives each member (joining is free)a free cookie after they have purchased a dozen. This idea reflects which one of Porter's five competitive forces?

Question

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The Cookie Club idea is focused on creating customer loyalty and increasing repeat business by giving incentives to customers. This reflects the bargaining power of customers, as they have the power to choose where to purchase their baked goods and the Cookie Club gives them an added incentive to choose Ted's bakery over competitors.

Ted Works in His Family's Bakery Business