Asked by Keilan Harris on Jun 12, 2024
Verified
PIMS data shows a strong correlation between ________ and ________.
A) market share; profitability
B) unit costs; marketing strategy
C) market share; product quality
D) profitability; marketing success
Market Share
The portion of a market controlled by a particular company or product.
Profitability
A measure of the efficiency of a company in generating profits from its revenue.
- Understand the link between economies of scale, market presence, and economic profitability.
Verified Answer
JC
Jonathan CastroJun 14, 2024
Final Answer :
A
Explanation :
PIMS data (Profit Impact of Market Strategies) is a database that analyzes the relationship between a company's market share and profitability. It has consistently shown that companies with a higher market share tend to be more profitable. This correlation is often referred to as the "market share-profitability link." Therefore, A) market share; profitability is the correct answer.
Learning Objectives
- Understand the link between economies of scale, market presence, and economic profitability.