Considering expectancy and valence, the threat of new competitor entry is stronger when:

A - the products of rival firms are strongly differentiated and buyers exhibit strong brand loyalties and brand preferences

B - incumbent firms enjoy strong economies of scale

C - the market is in the growth stage of the life cycle

D - all of these

E - incumbent firms are likely to be very aggressive in defending their market positions

T or F. A high degree of price competition (i.e. "price wars") would increase one's assessment of valence.

T or F. A company is considering entering an industry and learns that buyer power and supplier power are both very strong forces. This means valence is greater.

T or F. An industry is in the mature stage of its life cycle. Companies who are in this industry face increasing Market Stakes (valence).