Recently, the Only Type of Car Available for Anthony to Rent

question 105

Multiple Choice

Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import.Anthony was surprised at the comfort and performance of the car.He is in the market for a new car and had previously considered only buying another luxury SUV.Now, he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV.This is an example of the competitive risk that:

• A) a competitor's products can convey a product's differentiated features to a customer at a significantly reduced price.
• B) a product imitation can cause customers to perceive that competitors offer essentially the same goods.
• C) experience can narrow a customer's perceptions of the value of a product's differentiated features.
• D) brand loyalty insulates a company from rivalry with competitors.

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Definitions:

Cooperation

Collaboration and working together towards a common goal, often resulting in shared benefits and achievements.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Feedback

Information provided as a response to an action or behavior, intended to guide future actions.

Tensions

The state of being stretched tight, often referring to mental or emotional strain resulting from challenging situations.