Many companies prefer to follow rather than challenge the market leader. Patterns of ________ are common in capital-intensive, homogeneous-product industries, such as steel, fertilizers, and chemicals.
A) "feature fashion"
B) "conscious parallelism"
C) "supply delay"
D) "predatory pricing"
E) "covert security analysis"

Question

Quizplus · Accepted Answer

"Conscious parallelism" refers to companies following a market leader's actions without explicitly agreeing or colluding with each other. This is often seen in industries where the products are similar and require high levels of capital investment, as companies may not want to risk deviating from the industry norm. "Feature fashion" and "covert security analysis" are not industry terms and are not applicable to the given scenario. "Supply delay" and "predatory pricing" are not patterns of behavior commonly seen in companies that prefer to follow rather than challenge the market leader.

Many Companies Prefer to Follow Rather Than Challenge the Market