Which of the following is a valid observation on price-based rivalry among existing competitors?
A)It is damaging for the competitors and the industry in which they operate.
B)It leads to quality-based competition and innovation.
C)It results in hidden losses for the customers.
D)It decreases the price sensitivity of customers.

Question

Quizplus · Accepted Answer

Price-based rivalry often leads to reduced profit margins for competitors and can harm the overall industry by creating a race to the bottom, where companies focus on lowering prices rather than improving quality or innovation.

Which of the Following Is a Valid Observation on Price-Based