When Kleenex cuts its prices in Germany, it caused Puffs to lose profits there.In return, Puffs cut prices in Canada, causing Kleenex to lose profits.This is an example of
A)dumping.
B)multipoint pricing.
C)predatory pricing.
D)competitive pricing.
E)war pricing.

Question

Quizplus · Accepted Answer

This is an example of multipoint pricing, which is when a firm changes its pricing strategies in response to its competitors' pricing strategies in different geographic markets. In this case, Kleenex and Puffs are engaged in a pricing war in different countries, with each firm responding to the other's price cuts. This is not an example of dumping, predatory pricing, or war pricing, as there is no evidence of unfair or aggressive pricing tactics. Additionally, it is not fully an example of competitive pricing, as the firms are not simply matching each other's prices, but rather adjusting their prices based on the specific market conditions in different countries.

When Kleenex Cuts Its Prices in Germany, It Caused Puffs