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

Quizplus · Accepted Answer

The idea of the Cookie Club reflects the bargaining power of customers as it is a tactic to incentivize customers to continue purchasing from the bakery by offering them a free cookie after they have purchased a dozen. Customers have the power to choose where they purchase their baked goods from, and this Cookie Club is a way to retain customers and increase their loyalty to the bakery business.

Ted Works in His Family's Bakery Business