How Can a Marketer Overcome the Negative Effects of Commoditization

question 130

Multiple Choice

How can a marketer overcome the negative effects of commoditization?

• A) convince target consumers that the firm's products are as good as those of competitors
• B) convince target consumers that price is irrelevant in determining quality
• C) convince target consumers that the firm's products are different from those of competitors
• D) convince target customers that buying the highest-priced product is no guarantee of quality
• E) convince target customers that all the products in the market are equivalent

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Definitions:

Direct Costs

Expenses that can be directly traced to the production of a specific good or service, such as materials and labor.

Security Sales

Transactions involving the sale of financial instruments such as stocks, bonds, or commodities.

Capital Raised

The total amount of money that a company or project has obtained from investors or the market.

Rights Offering

A method by which companies raise capital, giving existing shareholders the right to buy additional shares at a discounted price.