Which of the following best describes a tit-for-tat strategy?
A)A firm charges a fixed price to every customer
B)A firm is prepared to match whatever change in strategy a competitor makes
C)A firm offers discounts for purchasing in quantity
D)A firm requires customers to enter into long-term purchase contracts
E)None of the above

Question

Quizplus · Accepted Answer

A tit-for-tat strategy involves matching whatever change in strategy a competitor makes. This means that if a competitor lowers their prices, the firm using a tit-for-tat strategy will also lower their prices to match. If a competitor increases their advertising, the firm using a tit-for-tat strategy will also increase their advertising to match. The idea is to respond in kind to maintain a competitive balance.

Which of the Following Best Describes a Tit-For-Tat Strategy