What Is a Potential Drawback of a Company Focusing on Price

question 209

Multiple Choice

What is a potential drawback of a company focusing on price?

• A) It makes advertising and promotional expenses worthless.
• B) It doesn't provide the firm with a competitive advantage.
• C) It cuts into profits.
• D) It will not motivate customers to enter into a buying relationship.

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Definitions:

Ambiguity

The quality of being open to more than one interpretation; inexactness.

Conformity Effect

The tendency of individuals to align their attitudes, beliefs, and behaviors with those of a group.

Outnumbered

Being in a situation where the number of individuals on one side is considerably less than those on the opposing side, often leading to a disadvantageous position.

Conformity

Conformity is the act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.