The major reason why most firms lower prices is to
A) strengthen brand image.
B) reduce advertising costs.
C) initiate a price war.
D) secure a higher market share.
E) allay concerns from the sales force.

Question

Quizplus · Accepted Answer

The major reason why most firms lower prices is to secure a higher market share. Lowering prices can attract more customers, increase demand for the product, and ultimately lead to a larger market share. This strategy is often used in competitive markets where firms are trying to outdo each other in terms of pricing and market share.

The Major Reason Why Most Firms Lower Prices Is to