All categories

2 years ago

When firms compete by offering unique product features rather than competing on price, ______ occurs.

1 answer:

6 0

When firms compete by offering unique product features rather than competing on price, <u>non-price competition</u> occurs; it is when businesses employ tactics to boost sales and market shares without lowering prices.

What is non-price competition?

In non-price competition, a company "seeks to distinguish its product or service from competing items on the basis of features like design and workmanship," according to a marketing strategy. Because it exists between two or more producers who sell goods and services at the same prices but seek to expand their respective market shares by non-price factors like marketing strategies and higher quality, it frequently happens in imperfectly competitive markets.

Types of Non-Price Competition:

Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution

Learn more about non-price competition here:

brainly.com/question/12297704

#SPJ4

You might be interested in

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$20 $5 $9 $12 Project

mr_godi [17]

Answer:

The NPV for Project A is 3.291 and Project B is 3.56

Explanation:

In this question, we have to use the net present value formula which is shown below:

Net present value = Present value of all years cash flows - Initial investment

where,

Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

number of year = 3

So,

Rate = 5%

For year 1 = 0.9524 (1 ÷ 1.05) ∧ 1

For year 2 = 0.9070 (1 ÷ 1.05) ∧ 2

For year 3 = 0.8638 (1 ÷ 1.05) ∧ 3

Now, multiply this present value factor with yearly cash inflows

For Project A,

The present value of year 1 = $5 × 0.9524 = $4.762

The present value of year 2 = $9 × 0.9070 = $8.163

The present value of year 3 = $12 × 0.8638 = $10.366

and the sum of all year cash inflow is $23.291

So, the Net present value would be equal to

= $23.291 - $20 = 3.291

And,

For Project B

The present value of year 1 = $8 × 0.9524 = $7.619

The present value of year 2 = $7 × 0.9070 = $6.349

The present value of year 3 = $3 × 0.8638 = $2.592

and the sum of all year cash inflow is $16.560

So, the Net present value would be equal to

= $16.560 - $13 = 3.56

Hence, the NPV for Project A is 3.291 and Project B is 3.56

4 0

3 years ago

Selected current year company information follows: Net income $ 16,753 Net sales 720,855 Total liabilities, beginning-year 91,93

a_sh-v [17]

Answer:

the total asset turnover is 2.65 times

Explanation:

The computation of the total asset turnover is shown below;

As we know that

Total assets turnover is

= Net sales ÷ average of total assets

= $720,855 ÷ ($91,932 + $206,935 + $111,201 + $133,851) ÷ 2

= $720,855 ÷ $271,959.50

= 2.65 times

Hence, the total asset turnover is 2.65 times

7 0

3 years ago

One of the most common mistakes new business owners make is

poizon [28]

Not knowing there market or customer's needs.

8 0

3 years ago

Luca owns paper making business. His products feature pressed flowers and a natural edge. He has had great success selling his p

aleksklad [387]

Answer: joint venture

Explanation:

Since Luca doesn't have a lot of money to invest in this overseas expansion, his best option for a market entry strategy would be the joint venture.

A joint venture refers to a form of business whereby two or more parties come together and then pool their resources together in order for them to accomplish a certain task. In this case, the other party can come up with the fund which will be required for the business expansion.

5 0

3 years ago

Your brother, who is prone to bearing substantial risk, suggests that you buy a security for $10,000 that promises to pay you $1

astraxan [27]

Answer:

16.59%

Explanation:

First we look at the formula which to determine the future value of the security and then work back to determine the annual return in terms of percentage

Future Value = Present Value x (1 +i)∧n

where i = the annual rate of return

n= number of years or period

We then plug the given figures into the equation as follows

we already know Present value to be $10,000 and the future value to be $100,000 and the number of years to be 15

Therefore, the implied annual return or yield on the investment is

100,000 = 10,000 x (1+i)∧15

(1+i)∧15 = 100,000/10,000 = 10

1 + i = (10∧(1/15))=1.165914

i= 1.165914-1

= 0.1659

= 16.59%

5 0

4 years ago