Assume a bottled water company is trying to decide on a new pricing strategy.Sound decision making would require the firm's managers to consider not only how consumers will respond to the product's own price,but how they will react to the price for the firm's product relative to the prices of similar products offered by the firm's competitors.

Question

Quizplus · Accepted Answer

It is important for a company to consider the prices of its competitors while deciding on a new pricing strategy. This helps in setting a price that is competitive and attractive to the consumers.

Assume a Bottled Water Company Is Trying to Decide on a New