MCQ - Single CorrectIn the 1950s, the cost of owning a television in the US started to drop. What effect, according to you, did this have on radio manufacturers?They experienced a higher threat of substitution.They experienced a lower threat of substitution.Their threat of substitution did not change in any way.Cannot be said
Question
MCQ - Single CorrectIn the 1950s, the cost of owning a television in the US started to drop. What effect, according to you, did this have on radio manufacturers?They experienced a higher threat of substitution.They experienced a lower threat of substitution.Their threat of substitution did not change in any way.Cannot be said
Solution
The correct answer is: They experienced a higher threat of substitution.
Here's why:
-
The cost of owning a television in the US started to drop in the 1950s. This means that more people could afford to buy a television.
-
Television and radio are substitutes for each other. They are both sources of entertainment and information. If the price of one falls, people might switch from the other to the cheaper one.
-
Therefore, as televisions became more affordable, people might have started to switch from radio to television. This would increase the threat of substitution for radio manufacturers.
Similar Questions
MCQ - Single CorrectPlayers in the Indian smartphone industry release new models every few months in an attempt to ensure that their products stay on top. This means that once a new model is released, the demand for older models significantly drops. How is this expected to impact the competitive rivalry within the industry?It is expected to decrease the competitive rivalry within the smartphone industry.It is expected to increase the competitive rivalry within the smartphone industry.It has no effect on the competitive rivalry within the smartphone industry.Cannot be said
MCQ - Single CorrectAirlines are known to have very low network effects in customer demand. In fact, the same customers often take an Indigo flight on one day and a SpiceJet flight on another day. What impact does this have on the threat of new entrants in the industry?It decreases the threat of new entrants in the airline industry.It has no effect on the threat of new entrants in the airline industry.It increases the threat of new entrants in the airline industry.Cannot be said
Select all that applyAccording to this case study, which of the following are true about the television industry?Multiple select question.By 2005, prices for a 30-inch television dropped below $800.Retailers pressured TV makers to charge higher prices.When flat panel TVs were first introduced around 2001, they were priced at about $10,000.Vizio could charge low prices for its TVs because it had low overhead costs and took slim margins.
One of the ways in which television changed during the 1970s that impacted the distribution of older, independent, and foreign films was....Looser restrictions from the FCC in terms of content,
Post-Test: Which of the following resulted from the rise of satellite radio?Multiple ChoicePeople no longer pay for radio programming.Traditional stations buy less syndicated content than before.Fewer people pay for cable television at home.Traditional stations air fewer commercials than before.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.