Which of the Following Is a Potential Defensive Move to Ward

question 13

Multiple Choice

Which of the following is a potential defensive move to ward off challenger firms?

• A) Granting volume discounts or better financing terms to dealers/distributors and providing discount coupons to buyers to help discourage them from experimenting with other suppliers/brands
• B) Signaling challengers that retaliation is likely in the event they launch an attack
• C) Making an occasional strong counter-response to the moves of weak competitors to enhance the firm's image as a tough defender
• D) Maintaining a war chest of cash and marketable securities
• E) All of these

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Definitions:

Compete

The act of entities striving against each other to attain a goal, such as a higher market share or win.

Cooperate

The act of working together towards a common goal or benefit.

Nonprice Competition

Strategies companies use to differentiate their product from competing products based on factors not related to price, such as quality or service.

Interdependence

A situation where two or more entities rely on each other.