As Firms Work to Become More Efficient and Effective in the Global

question 39

Multiple Choice

As firms work to become more efficient and effective in the global business environment, they are forced to continually innovate. Innovation in an organization:

• A) will always increase a firm's performance.
• B) may enhance or destroy a firm's capabilities.
• C) should not be pursued by industry leaders.
• D) happens only incrementally.

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Definitions:

Competition-Led Pricing

A pricing strategy where the prices are determined primarily by the prices of competing products or services in the market.

Ergonomic Chair

A chair designed to provide optimal comfort and support to the body, reducing strain and injuries related to poor posture.

Higher-End Price

A pricing strategy that sets the cost of goods or services at the upper range of the market, targeting consumers willing to pay more for perceived quality or prestige.

Price Skimming

A pricing strategy involving setting high initial prices for a new product to maximize profits from the segment of consumers willing to pay a premium before lowering the price over time.