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) Customer value is not an issue in deciding which express-delivery service to use.
B) FedEx is perceived as offering greater customer value.
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 FedEx dominates the market despite Canada Post's claim of comparable service and lower prices suggests that customers perceive FedEx as offering greater value. Therefore, option B, which states that "FedEx is perceived as offering greater customer value," is the most accurate statement. Option A is incorrect as customer value is clearly a factor in the decision-making process. Option C is also incorrect as Canada Post is not dominating the market despite its claims of lower prices. Option D cannot be determined from the information provided.

Canada Post Argues That Its Express Service Is Comparable to That