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

Question

Quizplus · Accepted Answer

A low-price "fighter brand" is typically launched as a response to a competitor's price reduction in order to win back price-sensitive customers. The company aims to offer a lower-priced alternative that can fulfill the same function as the competitor's product. If the market segment being lost is not price sensitive (A) or has shifted culturally (D), launching a low-price brand may not be effective. If the market segment no longer demands the product (E), then a new product launch may be necessary instead of just a low-price brand. So, C is the most appropriate answer.

A Company Would Most Likely Consider Launching a Low- Price