How can a company avoid the trap of competing only on price?
A)by keeping the price at a level higher than the competitors
B)by following a pricing strategy inconsistent with the market equilibrium
C)by differentiating the products or services that it offers
D)by selling at a price much lower than the competition

Question

Quizplus · Accepted Answer

Differentiating the products or services offered by the company is the best way to avoid the trap of competing only on price. By highlighting the unique features and benefits of their products or services, the company can create value for customers beyond just the price. This can increase their competitive advantage and customer loyalty, which can ultimately lead to higher profits. Simply keeping the price higher or lower than competitors, or using a pricing strategy inconsistent with the market equilibrium may not be sustainable or effective in the long run.

How Can a Company Avoid the Trap of Competing Only