Which of the following is NOT a factor that affects a company's price/quality (p/q) rating for UAV drones in a competitive market?

• A. The quality of components used in drone production
• B. The warranty period offered for UAV drones
• C. The advertising budget allocated for UAV drones
• D. The number of employees in the company's accounting department

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of price/quality (p/q) rating, which reflects how consumers perceive the value of a product based on its price relative to its quality.
2. Step 2: Identify factors that directly influence the quality aspect, such as the quality of components used in production and the warranty period offered, since these affect product reliability and consumer trust.
3. Step 3: Recognize that marketing efforts, like the advertising budget, can influence consumer perception and awareness, indirectly affecting the perceived price/quality ratio.
4. Step 4: Analyze whether internal company factors, such as the number of employees in the accounting department, have a direct or indirect impact on the product's price or quality from the consumer's perspective.
5. Step 5: Conclude that factors unrelated to product features, consumer perception, or market positioning—like the size of the accounting department—do not affect the price/quality rating in a competitive market.