In Response to Price Cuts from Competitors, a Cereal Company

question 129

Multiple Choice

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

• A) raising the perceived value of a product
• B) improving product quality
• C) accepting a reduced market share
• D) launching a "fighter brand"
• E) using high-low pricing

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Definitions:

Active Involvement

Participation or engagement in activities or processes in a physically or mentally engaged manner.

Cultural Group

A community of individuals who share common languages, rituals, practices, and values, often tied together by a shared history or geographic origin.

Imaginary Audience

A psychological concept where an individual believes that his or her actions are the center of other people's attention, a phenomenon common in adolescence.