Which of the Following Statements Concerning the Impact of Competition

question 99

Multiple Choice

Which of the following statements concerning the impact of competition on a small company's prices is true?

• A)When setting prices, a business owner must either match or beat competitors' prices on similar products or services.
• B)Because federal laws prohibit the practice as an unfair trade practice, business owners should not monitor their rivals' prices on identical items.
• C)When going up against larger, more powerful rivals, small firms should consider using nonprice competition as a way to differentiate their products or services rather than head-to-head price competition.
• D)All of the above

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Definitions:

Missionary Selling

Indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer.

Technical Assistance

Support provided, often by specialists, to solve specific technical problems or to improve the efficiency of processes.

IBM

A multinational technology company known for its computer hardware, software, and IT services and consulting.

Comparative Advertising

A marketing strategy where a product or service is presented as superior to competitors' offerings by directly comparing features.