When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.
reduce its production costs
reduce its marketing costs
maintain its current price and profit margin
increase its marketing budget to raise the perceived value of its product
increase its production costs to improve the quality of the product

Question

Quizplus · Accepted Answer

The Answer of When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.
reduce its production costs
reduce its marketing costs
maintain its current price and profit margin
increase its marketing budget to raise the perceived value of its product
increase its production costs to improve the quality of the product

When a Competitor Cuts Its Price, a Company Might Decide