A company would most likely consider launching a low-price "fighting brand" in response to a competitor reducing prices if ________.
A) the market segment being lost is price sensitive
B) the market segment being lost is not price sensitive
C) the market segment being lost responds to arguments of higher quality
D) the market segment being lost no longer demands the product
E) the market segment being lost has shifted culturally

Question

Quizplus · Accepted Answer

A low-price "fighting brand" is a strategy to compete with a competitor who has reduced prices. This strategy is most effective when the market segment being lost is price sensitive, meaning they are highly influenced by price changes and will switch to a competitor if they offer a lower price. Therefore, the company would consider launching a low-price "fighting brand" in response to a competitor reducing prices if the market segment being lost is price sensitive.

A Company Would Most Likely Consider Launching a Low-Price "Fighting