How Can a Company Avoid the Trap of Competing Only

question 95

Multiple Choice

How can a company avoid the trap of competing only on price?

• A)by keeping the price at a level higher than the competitors
• B)by following a pricing strategy inconsistent with the market equilibrium
• C)by differentiating the products or services that it offers
• D)by selling at a price much lower than the competition

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Definitions:

Centration

A cognitive limitation in early child development where the child focuses on one aspect of a situation, neglecting other important features.

Egocentrism

The inability to differentiate between one's own viewpoint and that of others, often observed in early childhood development.

Conservation

The understanding that certain properties of objects or substances remain the same even when their appearances change, a concept crucial in cognitive development.

Preconventional Level

Refers to the first level in Kohlberg's stages of moral development, characterized by an individual's moral reasoning that is based largely on external consequences and rewards.