A grocery store chain recently rolled out a customer loyalty program that sends the customer a $5 coupon towards their next purchase for every $250 they spend at the store. This is an example of strategic use of bargaining power of suppliers True False

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Business

Scarlett Harris

22 October, 01:13

A grocery store chain recently rolled out a customer loyalty program that sends the customer a $5 coupon towards their next purchase for every $250 they spend at the store. This is an example of strategic use of bargaining power of suppliers True False

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Fabian · Answer 1

False

Explanation:

The bargaining power of suppliers (Term of Michael Porter) is a force that shapes the competitive structure of a market.

It represents the way of put pressure by raising the prices or lowering the quality or quantity of the product. This power makes the buyer profits decrease.

In your case, this is a policy set to the customer, and it is not increasing the price, decreasing quantity or lowering the quality.

It is more policy to induct loyalty from the customer to purchase again from the grocery store.