Venus Corp

question 35

Multiple Choice

Venus Corp. a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it. In order to create demand, Venus Corp. should:

• A) price the console extremely high.
• B) create its own set of technical standards.
• C) ensure that there are adequate complementary products.
• D) use minimalistic and subtle advertising and marketing strategies.
• E) avoid licensing the format to other companies.

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Definitions:

Industry

A collection of businesses and companies that produce similar goods or offer similar services within an economic sector.

Invisible Hand

A metaphor coined by Adam Smith to describe how individuals pursuing their self-interest unwittingly contribute to the economic prosperity of society.

Market System

An economic approach wherein the processes of investment, manufacturing, and goods distribution are directed by supply-demand correlation, with a system that freely sets the prices of goods and services.

Prices

The amount of money required to purchase goods or services, indicating the value that consumers are willing to pay and sellers are willing to accept.