A company with excess capacity that wants to increase demand should engage in which of the following strategies?
A)Take no action
B)Consider priority systems for least desirable segments
C)Raise prices and use communication strategies to encourage usage at other times
D)Reduce prices selectively
E)Try to predict wait periods

Question

Quizplus · Accepted Answer

If a company has excess capacity and wants to increase demand, reducing prices selectively is the best strategy. This can attract price-sensitive customers and increase demand, while still ensuring that the company's costs are covered. It is also important to note that this strategy should be implemented selectively, to avoid cannibalizing sales from other, more profitable products or services.

A Company with Excess Capacity That Wants to Increase Demand