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16 May 2022, 03:30
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
83% (01:32) correct
17%
(01:53)
wrong
based on 144
sessions
History
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Time
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Not Attempted Yet
Talk inc, a phone maker, aims to increase its market share by deeply discounting its phones' prices for the next several months. The discounts will cut into profits, but because they will be heavily advertised the manufacturer hopes that they will attract buyers away from rival manufacturers' phones. In the longer term, the phone maker envisions that customers initially attracted by the discounts may become loyal customers.
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
A Whether the phone maker's competitors are likely to respond by offering deep discounts on their own products
B Whether the advertisements will be created by the manufacturer's current advertising agency
C Whether some of the phone maker's models will be more deeply discounted than others
D Whether the phone maker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
E Whether an alternative strategy might enable the phone maker to enhance its profitability while holding a constant or diminishing share of the market
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
A Whether the phone maker's competitors are likely to respond by offering deep discounts on their own products
B Whether the advertisements will be created by the manufacturer's current advertising agency
C Whether some of the phone maker's models will be more deeply discounted than others
D Whether the phone maker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
E Whether an alternative strategy might enable the phone maker to enhance its profitability while holding a constant or diminishing share of the market
18 May 2022, 05:55
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I think its A
The aim is to attract Comp's customers by reducing prices.
If the Comp reduced the prices ( more) at the same time, then customers wont have an incentive to change to Talk Inc
The aim is to attract Comp's customers by reducing prices.
If the Comp reduced the prices ( more) at the same time, then customers wont have an incentive to change to Talk Inc
04 Jul 2022, 04:59
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A Whether the phone maker's competitors are likely to respond by offering deep discounts on their own products
correct answer plan of the company is to reduce prices in order to increase its market share. If the competitors also follow the same strategy then the plan is bound to fail.
B Whether the advertisements will be created by the manufacturer's current advertising agency
out of scope
C Whether some of the phone maker's models will be more deeply discounted than others
out of scope
D Whether the phone maker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
out of scope the plan is not about maintaining profits. It is about increasing market share
E Whether an alternative strategy might enable the phone maker to enhance its profitability while holding a constant or diminishing share of the market
out of scope
correct answer plan of the company is to reduce prices in order to increase its market share. If the competitors also follow the same strategy then the plan is bound to fail.
B Whether the advertisements will be created by the manufacturer's current advertising agency
out of scope
C Whether some of the phone maker's models will be more deeply discounted than others
out of scope
D Whether the phone maker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
out of scope the plan is not about maintaining profits. It is about increasing market share
E Whether an alternative strategy might enable the phone maker to enhance its profitability while holding a constant or diminishing share of the market
out of scope
