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Which of the following statements about the importance of each competitive factor in determining company - to - company differences in branded sales volumes and
Which of the following statements about the importance of each competitive factor in determining companytocompany differences in branded sales volumes and market shares in a particular geographic region is false?How much impact each of the competitive factors have in determining each company's branded pairs sold and market share outcomes in a region is not a fixed amount but rather is an amount that varies from "big" when there are "big" differences in rival company levels of competitive effort on a particular competitive factor to "small" when there are "small" differences in the competitive efforts of rival companies to "zero" when the competitive efforts that companies exert on any one factor are identicalTiny crosscompany differences in competitive effort on a highly influential competitive factor like SQ ratings, the number of modelsstyles offered, and selling prices nearly always have a far bigger impact on company salesmarket share outcomes in a region than do large differences on less influential competitive factors. As the spread between the company with the region's highest SQ rating and the company with the lowest SQ rating becomes greater and greater, the stronger is the unit salesmarket share impact of the differences in the SQ ratings among competing companies. The closer to the allcompany regional average is a company's price or SQ rating or brand reputation or number of models and so on the smaller is the weightingimpact of that factor in accounting for why that company's regional unit salesmarket share is abovebelow the region's allcompany unit salesmarket share averages. Big SQ rating differences, big average wholesale price differences, and big differences in the number of modelsstyles offered in a region weigh heavily in accounting for companytocompany differences in branded pairs sold and market share in all four regions.
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