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

Question

Quizplus · Accepted Answer

Introducing a lower-priced option as a response to competitors' price cuts is an example of launching a "fighter brand," which is a strategy where a company creates a lower-priced brand to compete with rivals without damaging the existing brand image.

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