Price matching strategies may fail to enhance profits when:
A)firms cannot prevent customers from deceptive claims.
B)firms have different marginal costs.
C)firms cannot prevent customers from deceptive claims or firms have different marginal costs.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Price matching strategies rely on customers providing accurate information about prices they have seen elsewhere, but if some customers make deceptive claims, it can undermine the effectiveness of this strategy. In addition, if firms have different marginal costs, the firm offering the price match may end up losing money on the sale, reducing profits overall. Therefore, both of these factors can lead to price matching strategies failing to enhance profits.

Price Matching Strategies May Fail to Enhance Profits When