When faced with a competitor that could take away a firm's current customers, the firm should immediately launch a price war.

Question

Quizplus · Accepted Answer

A price war may not be the most effective response to a competitor taking away current customers. It can lead to a race to the bottom and hurt both companies' profitability. It may be more effective to focus on improving the value proposition and differentiation of the firm's products or services.

When Faced with a Competitor That Could Take Away a Firm's