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Which of the following statements about the importance of each competitive factor in determining company - tocompany differences in branded sales volumes and market shares
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?
Tiny crosscompany differences on a highly influential competitive factor like selling prices, or SQ ratings or modelsstyles nearly always have a far bigger impact on company salesmarket shares in a region than do large companytocompany differences on less influential competitive factors.
While it is true that some competitive factors affect the brand choices of buyers more than others, what matters most in determining sales and market shares is the size of the difference between a company's competitive effort and the regional average on each competitive factor.
In the rare instance that all companies in a region should happen to offer buyers the very same number of modelsstyles then modelsstyles become a total competitive nonfactor and have zero impact on buyer appeal for one brand versus anotherin such cases, of the regional sales and market share differences among company rivals stem directly from differences on the other competitive factors.
How much differences in the number of modelsstyles that companies have in their product lines matter in determining each company's unit salesmarket share in a region is not a fixed amount but rather is an amount that varies from "big" when crosscompany modelstyle differences are also "big" to "small" when crosscompany modelstyles differences are "small" to "zero" when the modelsstyles offered by rivals are identical
Big companytocompany differences in the number of modelsstyles offered to buyers in a region weigh heavily in accounting for companytocompany differences in branded pairs sold and market share in all four geographic regions.
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