单选题

An industry experiencing intense competitive rivalry among incumbent companies is best characterized by:

A、 differentiated products and low exit barriers
B、 a small number of competitors and low fixed costs
C、 customers basing purchase decisions largely on price

【正确答案】 C

【答案解析】

The factor that most influences customer purchase decisions is likely to also be the focus of competitive rivalry in the industry. In general, industries where price is a large factor in customer purchase decisions tend to be more competitive than industries in which customers value other attributes more highly.