Porsche has enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price.This ________ rivalry,since buyers become ________ price-sensitive.
A) increases; more
B) lessens; more
C) lessens; less
D) increases; less

Question

Quizplus · Accepted Answer

Porsche has enjoyed enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price. This lessens rivalry, since buyers become less price-sensitive. The prestige associated with its brand name also lowers supplier power since margins are high. Suppliers would probably desire to be associated with prestige brands, thus lessening their incentives to drive up prices.

Porsche Has Enhanced Power Over Buyers Because Its Strong Reputation