Which of the following are questions that must be addressed when determining responses to a competitor's threat?
a. If you respond, is the competitor willing and able to lower their price again?
b. Is our position in other markets at risk if the competitor gains market share?
c. Is there a response that would cost you more than the preventable sales loss?
d. All of the above.
e. Only (a) and (b).
Answer: E
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B2B Chapter 12
- _____ involves a formal invitation to potential suppliers to submit written, sealed bids.
- Which of the following are reasons why followers into a market often find lower costs than the pioneer firm?
- Which of the following are useful to business marketers trying to gauge competitive responses to pricing?
- Examples of typical add-on benefits include:
- _____ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified suppliers.
- ____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.
- ____ features a design-to-cost philosophy that begins by examining market conditions.
- A skimming strategy is appropriate when:
- ____ refers to the rate of percentage change in quantity demanded attributable to change in price.
- ____ costs include financing, storage, and inspection costs.
- If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to:
- General plant overhead is an example of _____ costs.
- Which of the following statements regarding competitive threats is incorrect?
- _____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship.
- The buyer's price sensitivity increases to the degree that:
- Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the:
- Examples of pricing objectives include:
- Pertinent considerations for pricing industrial products or services include:
- The successful implementation of value-based strategies requires close coordination between the _____and _____ units in the firm.
- In hypercompetitive environments,
- Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:
- Which of the following statements concerning target costing is(are) accurate?
- Before preparing a bid for any potential contract, the industrial firm should first:
- The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as: