For low-price strategy to work,low price must help keep out the competition,and the penetration pricer must maintain its low-price position-otherwise,the price advantage may
be only temporary.

Question

Quizplus · Accepted Answer

This statement is true as the key to low-price strategy is to maintain a competitive advantage by attracting customers and keeping them loyal to the brand. If the competition is able to match or beat the low price, then the strategy loses its effectiveness. The company needs to continuously monitor and adjust its pricing strategy to maintain its low-price position.

For Low-Price Strategy to Work,low Price Must Help Keep Out