The Maker of Hanes Pantyhose Attempts to Set Its Product

question 33

Multiple Choice

The maker of Hanes pantyhose attempts to set its product apart from the competition. As a result, the company obtained limited control over the price of its product. Achieving price control in this manner is known as

• A) advertising.
• B) distributional efficiency.
• C) low-cost production.
• D) niche marketing.
• E) product differentiation.

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Definitions:

Power Distance

The extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Competing Values Framework

A model used to assess and understand organizational culture by categorizing it into four quadrants based on two axes: flexibility vs. stability and internal vs. external orientation.

Coercive Power

A strategy by which a person controls the behavior of others through punishments, threats, or sanctions.

Reward Power

The extent to which someone uses incentives to influence the actions of others.