When Faced with a Competitor Who Has Cut Its Product's

question 108

Multiple Choice

When faced with a competitor who has cut its product's price,which of the following is typically the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

• A) improving the quality of the product
• B) introducing a higher-priced premium brand
• C) altering the company's marketing communications
• D) bundling the offer with add-ons
• E) distributing the product through less costly channels

---

Definitions:

Market Conditions

The various factors that influence the demand for and supply of products or services within a market.

Dollar Terms

The practice of expressing or measuring financial transactions, values, or performance in units of the U.S. dollar.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Markdown

A reduction from the original or listed price of an item, often used as a strategy to increase sales or clear out inventory.