A Regional Utility Company Needs to Change Consumers' Perceptions of Its

question 33

Multiple Choice

A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment.Which of the following strategies would best allow the company to accomplish this goal?

• A) contraction of the number of services offered by the utility company
• B) adding new services to its product line
• C) repositioning
• D) disintermediation
• E) use of product cannibalization

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Market Entry

The process by which a firm enters into a new market to compete and offer goods or services.

Price Falls

A decrease in the monetary value or market price of goods, services, or assets.

Producer Surplus

the difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.