In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?
A) raising the perceived value of a product
B) improving product quality
C) accepting a reduced market share
D) launching a "fighter brand"
E) using high-low pricing

Question

Quizplus · Accepted Answer

By introducing a lower-priced option to its product line, the company is launching a "fighter brand" to compete with its competitors' price cuts. This allows the company to maintain its higher-priced and higher quality options while also providing an option for price-sensitive consumers.

In Response to Price Cuts from Competitors, a Cereal Company