Using Feedback from Social Media, Companies Can 'Test the Waters

question 171

Multiple Choice

Using feedback from social media, companies can 'test the waters' with proposed price increases to avoid:

• A)not making enough money
• B)pricing backlash, similar to what Netflix experienced
• C)selling the product through retail stores
• D)customer support issues

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Definitions:

Rate of Return

The increase or decrease in the value of an investment during a specific timeframe, represented as a proportion of the investment's initial outlay.

Commodity

A basic good used in commerce that is interchangeable with other commodities of the same type; common examples include grains, gold, beef, oil, and natural gas.

Derivative Markets

Financial markets for instruments like futures, options, and swaps, whose value is derived from an underlying asset such as commodities, stocks, or currencies.

Business Risks

Business risks refer to the exposure a company or organization has to factors that will lower its profits or lead it to fail.