Price wars are usually harmful to firms because non-loyal customers will switch to whichever product has a lower price, and loyal customers
A) take advantage of lower prices, which diminishes profit.
B) will abandon the product as the image becomes cheapened.
C) will often pursue legal remedies.
D) will stay out of the market until prices stabilize.

Question

Quizplus · Accepted Answer

Loyal customers may take advantage of lower prices, leading to reduced profits for firms engaged in price wars.

Price Wars Are Usually Harmful to Firms Because Non-Loyal Customers