Concerning Pricing and the Competitive Environment, Which of the Following

question 21

Multiple Choice

Concerning pricing and the competitive environment, which of the following statements is(are) accurate?

• A)Competition establishes an upper limit on price.
• B)Late entrants to the market often enjoy potential cost advantages over the pioneering firm.
• C)Competitors will be more sensitive toward price reductions that threaten market segments that they deem important.
• D)All of the answer choices.
• E)Both competition establishes an upper limit on price and late entrants to the market often enjoy potential cost advantages over the pioneering firm.

---

Definitions:

Cost and Quality

The relationship between the expense of a product or service and its level of excellence or worth, often a key consideration in consumer purchasing decisions.

Minor-Points Close

A close in which the salesperson asks the prospect to make a low-risk decision on a minor element of a product.

Balance-Sheet Close

A sales technique where the salesperson presents a summary of the costs and benefits of a product or service to the customer, similar to a balance sheet in finance.