Question

Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do college students represent?a. Suppliers
b. Rivals
c. New Entrants
d. Substitutes
e. Buyers

Answer 1

Answer:

e. Buyers

Explanation:

As per Michael Porter's 5 forces to assess industry attractiveness, following are the five forces:

1. Buyer power

2. Supplier power

3. Threat of substitutes

4. Threat of new entrants

5. Competitive Rivalry

As per the given information, the students represent the buyer power with respect to their negotiation or bargaining power. This means the influence and control buyers exercise over price of products (textbooks) here.

In the given case, the supplier power appears more domineering since buyers, the students have no other option but to buy the updated textbooks beyond a period of time as those books have been suggested by the professor.