Your competitor has reduced prices on his entire line of products.You can interpret these price cuts by assuming that your competitor is trying to gain market share,is doing poorly and wants to increase revenue quickly,or ________.
A) signals an end to price/promotion wars
B) signals that price is no longer a competitive advantage
C) wants the whole industry to reduce prices
D) wants you to reduce your prices below his
E) none of the above

Question

Quizplus · Accepted Answer

The competitor may be trying to encourage the entire industry to lower prices, potentially to increase overall demand or to create a new pricing norm.

Your Competitor Has Reduced Prices on His Entire Line of Products.You