Which of the Following Is a Possible Trap of a Price-Cutting

question 17

Multiple Choice

Which of the following is a possible trap of a price-cutting strategy?

• A) Low prices usually achieve increases in both market share and market loyalty when customers switch.
• B) The company might need additional business because it has excess plant capacity.
• C) The company can initiate price cuts to dominate the market through lower costs.
• D) Consumers might not demand price concessions in the future.
• E) Competitors that match low prices might have longer staying power because of deep cash reserves.

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Definitions:

Orange

A citrus fruit known for its round shape and bright orange color, as well as being a rich source of Vitamin C.

Lower Esophagus

The terminal section of the esophagus which connects to the stomach, responsible for transporting ingested materials into the stomach for digestion.

Heartburn

A burning discomfort or pain in the chest, often caused by acid reflux from the stomach into the esophagus.

Bile Duct

A series of tubes that transport bile from the liver and gallbladder to the duodenum for digestion of fats.