If a Firm Promises More Than It Can Deliver

question 95

Multiple Choice

If a firm promises more than it can deliver,

• A)it has created an empowerment gap.
• B)consumers will have a knowledge gap.
• C)it creates a communication gap.
• D)it needs to enact a voice-of-customer program.
• E)perishability becomes a problem.

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Definitions:

Payoff Matrix

A table that describes the potential outcomes or payoffs in a strategic situation, depending on the actions of two or more decision-makers.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Dominant Strategy

A strategy that is best for a player in a game regardless of what strategies other players choose.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize profits collectively.