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 "fighting brand"
E) using high-low pricing

Question

Quizplus · Accepted Answer

Launching a "fighting brand" is a strategy where a company introduces a lower-priced and lower-quality product to compete with other brands that have lower prices. In this case, the cereal company introduced a new lower-priced option to compete with its competitors who had already lowered their prices.

In Response to Price Cuts from Competitors,a Cereal Company with Several