Asked by Bianca Castellon on Sep 28, 2024
Verified
________ occurs when a product's attributes that were once new become widespread among all products in a market.
A) Commoditization
B) Protectionism
C) Exploitation
D) Expansion
Commoditization
The process where products become indistinguishable from each other in the eyes of the consumer, leading to competition primarily on price.
Protectionism
Protectionism is an economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations.
Exploitation
The act of making use of resources or advantages for one's own benefit, often without regard for ethics or fairness.
- Understand the concept of commoditization and its effects on the market.
Verified Answer
AK
Afshin Kiasat2 days ago
Final Answer :
A
Explanation :
Commoditization occurs when a product's features or attributes that were once unique or innovative become commonplace and widely adopted by competitors, leading to reduced differentiation and pricing power in the market. As a result, products become more interchangeable, leading to price competition and lower profit margins.
Learning Objectives
- Understand the concept of commoditization and its effects on the market.