Canada Post argues that its express service is comparable to that offered by FedEx and that its prices are much lower.Yet FedEx dominates with more than a 45 percent share of the express-delivery market.Which of the following statements most accurately describes this situation?
A) FedEx is perceived as offering greater customer value.
B) Customer value is not an issue in deciding which express-delivery service to use.
C) Canada Post is perceived as offering greater customer value.
D) Canada Post should lower its prices even further to increase market share.

Question

Quizplus · Accepted Answer

The fact that Canada Post argues its prices are much lower than FedEx's suggests that price is a factor in the decision-making process for customers. Therefore, the reason for FedEx's dominance in the market must be attributed to something else, such as the perception that they offer greater customer value.

Canada Post Argues That Its Express Service Is Comparable to That