Canada Post Argues That Its Express Service Is Comparable to That

question 144

Multiple Choice

Canada Post argues that its express service is comparable to that 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.Which of the following statements most accurately describes this situation?

• A) FedEx is perceived as offering greater customer value.
• B) Customer value is not an issue in deciding which express-delivery service to use.
• C) Canada Post is perceived as offering greater customer value.
• D) Canada Post should lower its prices even further to increase market share.

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Definitions:

Capital Account

The capital account records the exchanges of financial assets and liabilities between a country and the rest of the world, including direct investment and loans.

Current Account

A component of a country's balance of payments that includes transactions in goods, services, primary income, and secondary income flows between domestic and foreign entities.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices.

British Pounds

The currency of the United Kingdom, symbolized as GBP, and commonly referred to as the pound sterling.