Question

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone, the other firm is considered to be a

A) competitor.
B) complementor.
C) rival.
D) substitute.

Answer 1

The correct answer is B) complementor. Complementors sell different products or services that enhance each other's offerings, rather than competitors who vie for the same market share with similar products.

Step-by-step explanation:

When customers value your products more when they have your product along with another firm's product, rather than when they have your product alone, the other firm is considered to be a complementor. Complementors are entities that sell different products or services which enhance the value of each other's offerings. For example, if you sell cameras, a firm that sells camera lenses that are compatible with your cameras is a complementor. Unlike competitors or rivals, who sell similar products or services as your own and vie for the same market share, complementors provide products or services that are different but work well alongside yours, often leading to a bundle that encourages purchase of both.