ISTM 209 Exam 3 – 2026 Exam Review

ISTM 209 EXAM 3 NEWEST 2026 ACTUAL EXAM| ISTM
209 EXAM 3 REVIEW WITH COMPLETE REAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+| (MOST RECENT!!)
Q1. According to Michael Porter, his competitive forces model
provides:
A) A financial accounting framework for auditing firms
B) A general view of the firm, its competitors, and the firm's
environment
C) A method for designing database schemas
D) A software development lifecycle

Correct Answer: B
Rationale: This is correct because Michael Porter's competitive
forces model provides a general view of the firm, its competitors,
and the firm's environment. As discussed in Chapter 2, the firm's
environment and the dependence of firms on environments are
crucial; Porter's model analyzes the firm's general business
environment .

Q2. Which of the following is NOT one of Porter's five
competitive forces?
A) Buyer Power
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,B) Threat of Substitute Products
C) Technological Advancement Speed
D) Rivalry Among Existing Competitors

Correct Answer: C
Rationale: This is correct because Porter's five forces are: Buyer
Power, Supplier Power, Threat of Substitute Products or Services,
Threat of New Entrants, and Rivalry Among Existing Competitors.
Technological advancement speed is an environmental factor but
not one of the five core competitive forces .

Q3. The ability of buyers to affect the price they must pay for
an item is known as:
A) Supplier power
B) Buyer power
C) Threat of substitutes
D) Rivalry

Correct Answer: B
Rationale: This is correct because buyer power is the ability of
buyers to affect the price they must pay for an item. High buyer
power means customers can force prices down; low buyer power
means sellers have more pricing control .


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,Q4. Switching costs are designed to primarily affect which
competitive force?
A) Threat of new entrants
B) Supplier power
C) Buyer power
D) Rivalry among existing competitors

Correct Answer: C
Rationale: This is correct because switching costs make customers
reluctant to switch to another product or service, thereby
reducing buyer power. Loyalty programs and high switching costs
are strategies to retain customers and mitigate their power to
negotiate lower prices .

Q5. A feature of a product or service that customers have
come to expect and that new competitors must offer to survive
is called:
A) A core competency
B) A synergy
C) An entry barrier
D) A value web

Correct Answer: C
Rationale: This is correct because an entry barrier is a feature of

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, a product or service that customers have come to expect and
M. M. M. M. M. M. M. M. M. M.




M. entering competitors must offer the same for survival. For
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M. example, a new bank must offer ATMs, online bill paying, and
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M. account monitoring to compete . M. M. M. M.




Q6. When an organization can significantly increase its market
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M. share by being first to market with a competitive advantage,
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M. this is called: M. M.




A) Product differentiation M.




B) First-mover advantage M.




C) Market niche strategy M. M.




D) Low-cost leadership M.




Correct Answer: B M. M.




Rationale: This is correct because first-mover advantage occurs
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M . when an organization can significantly increase its market share
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M. by being first to market with a competitive advantage. Being first
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M. allows the organization to establish brand recognition and
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M. customer loyalty before competitors enter . M. M. M. M. M.




Q7. The process of gathering information about the
M. M. M. M. M. M. M.




competitive environment, including competitors' plans and M. M. M. M. M.




M. products, is known as: M. M. M.




A) Business intelligence M.




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