A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Question

Quizplus · Accepted Answer

A company considering a price change should be concerned about both consumers' and competitors' reactions. If the price change is too high, consumers may switch to a competitor's product, while if the price change is too low, competitors may lower their prices to match or undercut the company's new prices. Thus, a company must consider the competitive landscape when determining an appropriate price change.

A Company Considering a Price Change Should Be Concerned About