Larger Companies Often End Up Charging Higher Prices and Achieve

question 71

Multiple Choice

Larger companies often end up charging higher prices and achieve a more dominant position in the market than smaller firms that cannot compete against them and their large advertising budgets. When this occurs, advertising:

• A)helps quality products from smaller brands reach the target audience.
• B)increases the choice of alternatives for consumers.
• C)becomes a substitute for competition based on price.
• D)encourages competition based on product improvement.
• E)discourages large brands from becoming market leaders.

---

Definitions:

Seiko

A renowned Japanese company specializing in the manufacture and sale of watches, precision instruments, and jewelry, established in 1881.

Pulsar

A highly magnetized, rotating neutron star that emits beams of electromagnetic radiation out of its magnetic poles.

Multibranding Strategy

A marketing approach where a single company owns or manages multiple brands in the same product category, differentiating each to target different market segments.

Product Failure

Occurs when a product does not perform as intended or fails to meet consumers' expectations, leading to its withdrawal from the market.