Which of the following is true about price competition?
A) A major advantage of price competition is flexibility.
B) Price competition allows the marketer to build brand loyalty.
C) Price wars do not result from price competition.
D) In price competition, marketers distinguish their brands with unique product features.
E) In price competition, marketers distinguish their brands with promotion and packaging.

Question

Which of the following is true about price competition? 
A) A major advantage of price competition is flexibility. 
B) Price competition allows the marketer to build brand loyalty. 
C) Price wars do not result from price competition. 
D) In price competition, marketers distinguish their brands with unique product features. 
E) In price competition, marketers distinguish their brands with promotion and packaging.

Quizplus · Accepted Answer

Price competition allows marketers to be flexible with their pricing strategy in response to market demand and competitors' pricing.

Answer: E 
 In price competition, marketers can differentiate their brands through promotion and packaging to create a unique brand image and perception. Price competition focuses on competing based on price, not product features.

Which of the Following Is True About Price Competition