If the Price of an Alternative Is Lower Than the Price

question 72

Multiple Choice

If the price of an alternative is lower than the price of an existing product, and customers perceive similar benefits from both the products, then the ________.

• A) switching cost is high
• B) price of the product should be increased to retain market share
• C) threat from the substitute is strong
• D) customers' bargaining power decreases

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Definitions:

Frederick Taylor

Known as the father of scientific management, he introduced the idea of applying scientific methods to management tasks to improve economic efficiency and labor productivity.

Carefully Calibrate

To adjust or measure something with a high degree of precision and care, ensuring accuracy or optimal performance.

Work Simplification

The standardization and the narrow, explicit specification of task activities for workers.

Task Activities

Activities related to the accomplishment of job duties or responsibilities in a work environment.