Which of the following intensifies price competition?
A)Non-price-related costs of using competing alternatives are high.
B)Wider distribution of competitor and or substitution offers.
C)Personal relationships have been established.
D)Switching costs are high.
E)Customer need for time and location specificity.

Question

Quizplus · Accepted Answer

A wider distribution of competitors and/or substitution offers means that there are more options available to customers, which intensifies price competition as companies try to offer lower prices to attract customers. Option A is incorrect because high non-price-related costs may not necessarily lead to price competition. Option C is incorrect because personal relationships may actually reduce price competition as customers may be willing to pay more for a product or service from a company they have a relationship with. Option D is incorrect because high switching costs may deter customers from switching to a competitor even if their prices are lower. Option E is incorrect because a customer's need for time and location specificity may not necessarily lead to price competition, it may just require companies to offer more convenient options.

Which of the Following Intensifies Price Competition