Which of the following statements concerning the impact of competition on a small company's prices is true?
A)When setting prices, a business owner must either match or beat competitors' prices on similar products or services.
B)Because federal laws prohibit the practice as an unfair trade practice, business owners should not monitor their rivals' prices on identical items.
C)When going up against larger, more powerful rivals, small firms should consider using nonprice competition as a way to differentiate their products or services rather than head-to-head price competition.
D)All of the above

Question

Quizplus · Accepted Answer

When going up against larger, more powerful rivals, small firms should consider using nonprice competition as a way to differentiate their products or services rather than head-to-head price competition. While business owners should be aware of their competitors' prices, the focus should be on creating value for customers through non-price factors like quality, customer service, and unique features. Matching or beating competitors' prices is not always necessary or sustainable for a small company's profitability. Federal laws prohibit certain unfair trade practices, but monitoring competitors' prices is not one of them.

Which of the Following Statements Concerning the Impact of Competition