Watch the video "forms of marketing research." company a is thinking about bringing to market a new product in a category where
it knows very little about the consumers or their needs and wants. describe which forms of marketing research would be appropriate and explain why. by contrast, company b has an established product and knows a lot about its customers. the company wants to measure customer satisfaction. describe which forms of marketing research would be appropriate and explain why. in replies to peers, provide additional ideas for the types of research that could be used.
B) the other firm does not view the announcement as credible
Explanation:
The reason is that the other firm thinks that the announcing firm will make losses as it will not be able to sell the products in an imperfect market where both the firms have identical cost functions and knew all about the cost. So increasing the production when the demand is the same will decrease the price of the product and result in increased losses to the announcing company.
In the given question,the cost to produce the toothpaste has increased, which led to the increase in the price of the toothpaste significantly. But there is no change in the demand of the toothpaste.
Hence, this product is inelastic.
In the inelastic demand, the demand of the product does not change with any variation in the price of the product.
