In the small but growing town where you live, Burke's Fine Furnishings, where you work as the marketing manager, has been the only local choice for consumers for about 20 years. But recently, a new furniture store opened, and they are out to steal your business with incredible deals and "no-interest-for-a-year" credit offers. What's the best way to respond to their penetration pricing strategy?
A) Maintain your prices and hope they'll raise theirs before you go out of business
B) Lower your prices and offer a similar credit deal, at least temporarily
C) Start offering other products, such as appliances, so you're not competing head-to-head
D) Trash talk the competitor and try to spread malicious rumors about them

Question

Quizplus · Accepted Answer

Lowering prices and offering a similar credit deal, at least temporarily, can help Burke's Fine Furnishings remain competitive and retain customers who might be tempted by the new store's deals. This response directly addresses the competitive threat by matching the value proposition offered by the new entrant.

In the Small but Growing Town Where You Live, Burke's