When a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share they are demonstrating a(n)__________________.

Question

Quizplus · Accepted Answer

When a company makes pricing decisions to undercut competitors and gain market share, they engage in a price war. This strategy can be effective in the short-term, but it may lead to long-term damage to the industry and lower profitability for all competitors.

When a Company Purposefully Makes Pricing Decisions to Undercut One