As the lowest cost producer in the market, your firm has decided to reduce the price of your product again by 10 percent. This price decline has the effect of driving a competitor out of the market and of attracting price sensitive shoppers to your brands. This is an example of what type of pricing strategy?
A) experience curve
B) activity-based
C) target costing
D) average
E) predatory

Question

Quizplus · Accepted Answer

The Answer of As the lowest cost producer in the market, your firm has decided to reduce the price of your product again by 10 percent. This price decline has the effect of driving a competitor out of the market and of attracting price sensitive shoppers to your brands. This is an example of what type of pricing strategy?
A) experience curve
B) activity-based
C) target costing
D) average
E) predatory

As the Lowest Cost Producer in the Market, Your Firm