Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will _____________ until ___________.
A) initiate more competitive actions; the firm returns to profitability
B) initiate fewer competitive actions; the quality problems are corrected
C) initiate more competitive actions; the quality problems are corrected
D) advertise more; customers believe the quality had improved

Question

Quizplus · Accepted Answer

A competitor whose products suffer from poor quality will likely initiate fewer competitive actions until the quality problems are corrected. Poor quality can damage a brand's reputation and lead to decreased demand for its products. Therefore, the competitor would need to focus on improving quality before it can effectively compete with other firms in the market. Once the quality problems are corrected, the competitor can resume competitive actions.

Quality Affects Competitive Rivalry Because a Competitor Whose Products Suffer