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.