A predictive study showed that a company would gain a 10% market share if it reduced its product price by $5.The study assumed competitors would keep the prices of their products unchanged.
A) This study can be used in all situations.
B) The company should reduce its product price by $5.
C) As the company cannot control the price decisions of its competitors so the study is not very useful.
D) A new study focusing on a smaller number of variables is required.
E) Market fluctuations make this study important for prediction.

Question

Quizplus · Accepted Answer

The study's assumption that competitors will keep their prices unchanged is a significant limitation, as the company cannot control competitors' pricing decisions. This makes the study's usefulness limited in real-world scenarios where competitors might react to price changes.

A Predictive Study Showed That a Company Would Gain a 10