Which of the following factors increases pressures for cost reductions?
A) Differences in distribution channels between home and foreign markets are modest.
B) Increasing national wealth is expanding the market.
C) The product has great transportation needs.
D) The product has high switching costs.
E) Differentiation on nonprice factors is difficult, and price is the main competitive weapon in a market.

Question

Quizplus · Accepted Answer

When differentiation on nonprice factors is difficult, price becomes the main competitive weapon, which puts pressure on businesses to reduce costs in order to offer competitive prices.

Which of the Following Factors Increases Pressures for Cost Reductions