Cutter's Catering Services advertises that they are the "friendliest caterers in town." Though their prices are no lower than the rates of competitors, they put a great deal of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Cutter's Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price cutting.

Question

Quizplus · Accepted Answer

In many markets, cutting prices is not an effective competitive strategy since it is easy for other firms to respond by cutting prices as well. Many firms rely on nonprice strategies that focus on high quality, outstanding service, fast delivery, or similar factors to differentiate their products and achieve a high level of customer loyalty.

Cutter's Catering Services Advertises That They Are the "Friendliest Caterers