Recently,the only type of car available for Anthony to rent on a business trip was a compact,fuel-efficient Japanese import. Anthony was surprised at the comfort and performance of the car. He is in the market for a new car and had previously considered only buying another luxury SUV. Now,he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV. This is an example of the competitive risk that
A)a competitor's products can convey a product's differentiated features to a customer at a significantly reduced price.
B)a product imitation can cause customers to perceive that competitors offer essentially the same good.
C)experience can narrow a customer's perceptions of the value of a product's differentiated features.
D)brand loyalty insulates a company from rivalry with competitors.

Question

Quizplus · Accepted Answer

Experience with a different type of car can change Anthony's perception about what features he truly values in a car, ultimately leading him to consider a less expensive option. It does not involve a competitor offering a similar product at a lower price (B) or brand loyalty (D). While the import could be considered a competitor to a luxury SUV, it is not necessarily conveying differentiated features at a lower price (A).

Recently,the Only Type of Car Available for Anthony to Rent