Competitors are more likely to respond to competitive actions that are taken by:
A) differentiators.
B) larger companies.
C) first movers.
D) market leaders.

Question

Quizplus · Accepted Answer

Market leaders are more likely to elicit a competitive response from their competitors as they have a larger market share and are seen as the biggest threat to other companies. Competitors are more likely to respond aggressively to market leaders in order to protect their own market share. Differentiators, on the other hand, may not be seen as a direct threat to competitors, and thus may not elicit as strong of a response. Larger companies and first movers may be seen as formidable competitors, but it ultimately depends on their market share and competitive position.

Competitors Are More Likely to Respond to Competitive Actions That