Sometimes Managers Price Their Products Too Low,resulting in a Loss

question 52

Multiple Choice

Sometimes managers price their products too low,resulting in a loss of company profits.One reason this happens is that:

• A) managers attempt to buy market share through aggressive pricing,but the cuts are quickly met by competitors,which wipe out any gain in market share
• B) consumers tend to equate lower prices with low-quality goods,and they are never able to regain that lost market share
• C) price-skimming strategies only work in the short-term,and always eventually result in lower profits
• D) most managers simply lack good business sense,especially in regard to finances
• E) all of the above are reasons

Understand the basic strategies companies can adopt for competitive advantage.

Identify the primary and support activities in a firm's value chain.

Grasp the impact of technology on business operations and competitive strategies.

Comprehend the difference between effectiveness and efficiency in organizational processes.

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Definitions:

Guilt

A cognitive or emotional experience that occurs when a person believes or realizes—accurately or not—that they have compromised their own standards of conduct or violated a moral standard.

Acute Stress Disorder

A psychological condition that occurs in response to a traumatic event, characterized by a range of symptoms including anxiety, detachment, and other dissociative symptoms.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by symptoms such as flashbacks, nightmares, and severe anxiety.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental health conditions and criteria for diagnoses.