Companies sometimes initiate price cuts in a drive to dominate the market through lower costs.One of the possible traps of a price-cutting strategy is ________.
A) secure target market customer
B) consistent high-quality consumer
C) dependence on a firm market
D) loyal customer market
E) shallow pockets

Question

Quizplus · Accepted Answer

The possible trap of a price-cutting strategy is that it may attract price-sensitive customers who are not loyal and only buy when prices are low. This can lead to a situation where the company's profitability is entirely dependent on low prices and cannot sustain higher prices in the long run if they have shallow pockets.

Companies Sometimes Initiate Price Cuts in a Drive to Dominate