CLEP Marketing

Category - Ethics

The impact of high corporate-marketing spending on smaller companies can be seen in the reduction of competition through
  1. Reduced supplier relations
  2. Fraudulent packaging
  3. Planned obsolescence
  4. Barriers to entry
  5. Predatory pricing
Explanation
Answer: D - The impact of high corporate-marketing spending on smaller companies can be seen in the reduction of competition through barriers to entry. Large corporations and companies that dominate a certain market often outspend their smaller-sized competition by a wide margin. High marketing spending leads to higher brand equity and market domination. This domination is considered a barrier to entry because it leads to difficulties for companies that cannot match the marketing spending of large corporations.
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