When Competition Is Keen or Expected to Increase in the near Future

question 55

Multiple Choice

When competition is keen or expected to increase in the near future, what would cause a product to be more attractive to buyers and the market less attractive to the competition?

• A) Flooding the market
• B) Skimming pricing strategy
• C) Perception marketing
• D) Low prices

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Definitions:

Days' Sales In Inventory

A financial metric that estimates how many days it will take to sell the entire inventory, indicating the liquidity of inventory.

Profit Margin

A financial metric that measures the extent to which a company or business activity makes money, expressed as a percentage of revenue.

Profit Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency with which a company produces goods.

Gross Margin Ratio

A financial metric that measures the difference between revenue and cost of goods sold, expressed as a percentage of revenue.