In January,Home Depot offered a 10 percent-off coupon and Lowe's did not.In February,Lowe's offered a 10 percent-off coupon and Home Depot did not.In March,Home Depot offered a 10 percent-off coupon and Lowe's did not.It is likely that Home Depot and Lowe's are both playing the ________ strategy.

Question

Quizplus · Accepted Answer

The strategy of offering a discount only when the competitor does the same is known as the tit-for-tat strategy. Home Depot and Lowe's both offered a 10 percent-off coupon in alternating months, which is consistent with the tit-for-tat strategy. This strategy aims to maintain a mutually beneficial outcome for both parties, rather than engaging in a destructive price war.

In January,Home Depot Offered a 10 Percent-Off Coupon and Lowe's