Which of the Following Statements About Nonprice Competition Is False

question 62

Multiple Choice

Which of the following statements about nonprice competition is false?

• A) Companies that use nonprice competition do not need to keep track of their competitor's prices.
• B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition.
• C) A firm using nonprice competition can build loyalty to both its company and its products.
• D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand.
• E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

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Definitions:

Corporate Chains

networks of retail or service outlets operated by a single company, offering the same brand and format across locations.

Clayton Act

A U.S. legislation enacted in 1914 aimed at promoting competition among businesses and preventing unfair anti-competitive practices.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Classifying Retail Operations

The process of organizing retail businesses into categories based on factors like product lines, service level, pricing strategy, and target market.