EC-008 Ready, Set, Compete! (Competition) Pop Quiz

What is competition?

• A game played between two teams

• A form of collaboration between companies

• Competition is a rivalry among two or more businesses to attract scarce customer dollars.

• A type of race

Explain the difference between direct and indirect competition.

• C. Direct competition involves businesses in the same industry, while indirect competition involves businesses in different industries.

• B. Direct competition involves businesses selling the same products, while indirect competition involves businesses selling different products.

• D. Direct competition involves businesses in different industries, while indirect competition involves businesses in the same industry.

• A. Direct competition involves businesses selling different products, while indirect competition involves businesses selling the same products.

Explain the difference between price and nonprice competition.

• A. Price competition focuses on the quality of products, while nonprice competition focuses on the price of products.

• B. Price competition focuses on the price of products, while nonprice competition focuses on factors other than price.

• C. Price competition focuses on advertising, while nonprice competition focuses on product features.

• D. Price competition focuses on product features, while nonprice competition focuses on advertising.

What are two examples of price competition?

• C. Expanding product line and entering new markets

• A. Offering discounts and running promotional campaigns

• B. Improving product quality and customer service

• D. Enhancing brand image and reputation

What are two examples of nonprice competition?

• D. Enhancing brand image and reputation

• A. Offering discounts and running promotional campaigns

• B. Improving product quality and customer service

• C. Expanding product line and entering new markets

Which of the following is an example of direct competition?

• A. A local bakery and a grocery store that sells bread.

• B. A grocery store and an online retailer

• C. A car manufacturer and a restaurant

• D. A bookstore and a movie theater

Which of the following is an example of indirect competition? (Select all that apply)

• A local bakery and a taco restaurant

• A grocery store and an electronics store

• Buena High School and Primavera Online School

• C. A car manufacturer and a restaurant

What is the main focus of price competition?

• A. Product quality

• B. The cost of the product

• D. Amount charged to a customer

• C. Amount a business pays to acquire the product

What is the main focus of nonprice competition?

• A. Product quality

• B. Customer service

• C. Advertising

• D. Price

Which of the following is an example of price competition?

• C. Expanding distribution channels

• B. Improving product design

• D. Enhancing brand reputation

• A. Offering a loyalty program