There are two U.S.locations where your company is currently the only producer of soda.You currently make 40 in each location,but Pepsi is entering the markets.What decision should you make? (The chart applies for each location)

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Quizplus · Accepted Answer

By pricing low, the company can attract more customers and establish brand loyalty before Pepsi enters the market. This can also make it difficult for Pepsi to gain a foothold in the market, as consumers may be more likely to stick with the cheaper option they are already familiar with. Additionally, if the company already has a strong customer base, pricing low can help to maintain that base and prevent customers from switching to Pepsi.

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