When a Competitor Cuts Its Price,a Company Is Most Likely

question 11

Multiple Choice

When a competitor cuts its price,a company is most likely to decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.

• A) stabilize its production costs
• B) reduce its marketing costs
• C) hold its current prices and profit margin
• D) increase its marketing budget to raise the perceived value of the product
• E) increase its production costs to improve the quality of the product

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Definitions:

Values

A standard for determining what things hold central importance.

Society's Attitudes

The collective beliefs, values, and norms that characterize a societal group or community at a given time.

Civil Management

The administration and organization of non-criminal legal matters and disputes, including civil litigation and the judicial processes that govern them.

Corporate Social Responsibility

A business model in which companies not only aim to be profitable but also ensure they have a positive impact on society, the environment, and the economy.