Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of
A) high power of buyers.
B) high threat of new entrants.
C) high levels of direct competition.
D) high threat of substitutes.

Question

Quizplus · Accepted Answer

Frequent price cutting, new product introductions, and intense advertising campaigns all point towards high levels of direct competition within the industry. This means that firms are striving to differentiate themselves and gain market share in a crowded marketplace.

Frequent Price Cutting by Firms in an Industry, Frequent Introduction