CIMAPRA19-E03-1 Exam - Topic 2 Question 117 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam

Question #: 117
Topic #: 2

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

ACompetitive rivalry.

BThreat of substitutes.

CBargaining power of suppliers.

DThreat of new entrants.

EBargaining power of customers.

Show Suggested Answer

Suggested Answer: B, E

by Layla at Oct 30, 2025, 10:58 PM

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Micah

2 days ago

I lean towards A and E as well. Price comparison really boosts customer bargaining.

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Ming

7 days ago

I feel like A and B could work too. Substitutes are always a threat.

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Benedict

26 days ago

Agreed! A and E make sense. Customers have more power now.

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Minna

1 month ago

I thought D) Threat of new entrants would be more relevant here.

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Lizbeth

1 month ago

For sure E) Bargaining power of customers has increased!

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Monroe

1 month ago

Wait, how does this affect B) Threat of substitutes?

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Marica

2 months ago

I agree, A) Competitive rivalry is huge now.

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Chana

2 months ago

Definitely A) Competitive rivalry. Prices are dropping fast!

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Cecil

2 months ago

A and E, easy peasy. The price comparison website has turned this hotel industry into a cutthroat jungle.

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Lucia

2 months ago

A and E, no doubt. The price comparison website has made this hotel business a real race to the bottom.

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Gladys

2 months ago

A and E for sure. The price comparison website has turned this hotel industry into a real bloodbath!

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Adrianna

2 months ago

I agree with A and E. The price comparison website has increased competition and given customers more leverage to negotiate better deals.

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Venita

3 months ago

I’m a bit confused about the threat of substitutes; I thought that was more about alternative services rather than price competition. Could it be relevant here?

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Belen

3 months ago

I remember a practice question that mentioned how price comparison sites can intensify competition, so I’m leaning towards competitive rivalry and maybe bargaining power of customers as well.

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Lenna

3 months ago

I think A and E are the best choices. Competitive rivalry is intense now.

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Letha

3 months ago

A and E are the correct answers. The price comparison website has increased competitive rivalry and the bargaining power of customers.

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Tabetha

4 months ago

Definitely A and E. The price comparison website has made it easier for customers to shop around and put pressure on the hotels to lower their prices.

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Alba

4 months ago

I'm not so sure about the second force, but I feel like the bargaining power of customers might have increased because they can easily find better deals now.

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Judy

4 months ago

I think competitive rivalry is definitely one of the forces affected since the price comparison site has made it easier for customers to see how Plush stacks up against competitors.

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Xochitl

4 months ago

I'm pretty confident that Competitive Rivalry and Bargaining Power of Customers are the two forces most impacted here. The details about the competitors reducing prices and increasing special offers point to heightened rivalry, while the price comparison website gives customers more leverage.

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Micaela

5 months ago

Okay, let me see if I can figure this out. The price comparison website has led to increased competition and reduced prices, so I'd say Competitive Rivalry is definitely one of the forces affected. And with customers able to easily compare prices and offerings, their Bargaining Power has probably increased as well.

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Carmelina

5 months ago

I'm a bit confused by this question. There are a lot of details about the hotel and its website, but I'm not sure how that connects to Porter's Five Forces. I'll need to think this through carefully.

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Angelica

5 months ago

This looks like a straightforward question about Porter's Five Forces. I think the key is to identify which two forces have been most impacted by the use of the price comparison website.

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Murray

3 months ago

I think it's definitely A and E. The competition is fierce now.

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Gilberto

4 months ago

A and E make sense. Everyone's lowering prices to attract bookings.

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