What tactical term best describes the pricing relationship between Toyota and Honda such that Toyota's response is to lower the price on the Camry if Honda were to first announce a large price cut on the Accord?
A)Tough commitment
B)Strategic complement
C)Soft commitment
D)Strategic substitute
E)Duopoly

Question

Quizplus · Accepted Answer

Strategic complement means that the action of one firm (e.g., Honda) complements the action of another firm (e.g., Toyota). In this case, if Honda lowers the price of the Accord, Toyota's best response is to lower the price of the Camry.

What Tactical Term Best Describes the Pricing Relationship Between Toyota