The Waterfall Strategy of Sequential Entry Is Preferable Over the Sprinkler

question 41

Multiple Choice

The waterfall strategy of sequential entry is preferable over the sprinkler model when:

• A)the lifecycle of the product is relatively short.
• B)there are low costs of entry into the market.
• C)there are many competitors.
• D)there are weak local competitors.
• E)fast growth is anticipated.

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Definitions:

Willingness to Pay

The highest price a person is willing to pay for a product or service, indicating how much they value it.

Consumer Surplus

The deviation between the cumulative amount consumers are inclined to spend on a good or service and the amount they really spend.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of that good or service consumers are willing and able to purchase, typically downward sloping.

Price

The financial sum necessary for acquiring a good or service.