Which of the Following Intensifies Price Competition

question 39

Multiple Choice

Which of the following intensifies price competition?

• A)Non-price-related costs of using competing alternatives are high.
• B)Wider distribution of competitor and or substitution offers.
• C)Personal relationships have been established.
• D)Switching costs are high.
• E)Customer need for time and location specificity.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market average.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification, unlike systematic risk.

Covariance Risk

The degree to which two assets' returns move in relation to each other, indicating the risk inherent in holding the assets together in a portfolio.

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk, which cannot be eliminated through diversification.