Competitive Rivalry Based Solely on ________ Is Destructive to Firms

question 7

Multiple Choice

Competitive rivalry based solely on ________ is destructive to firms as it transfers most of the value created in the industry to the customers.

• A) price-cutting
• B) new product releases
• C) promotional campaigns
• D) product differentiation

---

Definitions:

Intangibility

A characteristic of services that implies they cannot be seen, touched, or made tangible in the same manner as physical products.

Inseparability

A characteristic of services indicating that they are often produced and consumed simultaneously and cannot be separated from their provider.

Nonprofit Organizations

Entities that operate for purposes other than making a profit, focusing on social, charitable, cultural, or educational objectives.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.