Canada Post Argues That Its Express Service Is Comparable to What

question 41

Multiple Choice

Canada Post argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet FedEx dominates, with more than a 45-percent share of the express-delivery market. Why does FedEx have a higher market share?

• A)Canada Post is perceived as offering greater customer value.
• B)FedEx is perceived as offering greater customer value.
• C)FedEx and Canada Post offer the same customer value.
• D)Customer value is not an issue in deciding between FedEx and Canada Post.

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Definitions:

Opportunity Cost

The forfeiture of potential advantages from various alternatives upon choosing one.

Control Over

The authority or power to regulate, direct, or dominate a situation, process, or entity.

Technological Advances

Innovations and improvements in technology that increase productivity and potentially lead to economic growth and development.

Specialized Resources

Resources uniquely suited for a specific type of production or service, enhancing efficiency.