Which of the following is a risk a company takes when building a strategy around the experience curve?
A) Competitors will likely not be able to meet the company's price cuts.
B) Existing technologies are likely to become more expensive as the company expands.
C) The method does not take competitors' prices into account.
D) The method may cause consumers to become frustrated with changing prices.
E) Aggressive pricing may give the product a cheap image, causing customers to lose interest.

Question

Quizplus · Accepted Answer

The experience curve strategy relies heavily on aggressive pricing to achieve cost savings and gain market share. However, this may lead to the perception that the product is cheap and of low quality, which can deter potential customers.

Which of the Following Is a Risk a Company Takes