Hammich,a burger restaurant,recently announced plans to drop the price of its double cheese burger from $1.99 to just 99 cents in order to match its competitor's pricing.This is an example of a _____.
A)volume strategy
B)prestige objective
C)profitability strategy
D)price war

Question

Quizplus · Accepted Answer

This is an example of a price war, where competitors try to undercut each other's prices in order to gain market share. Hammich dropping the price of its burger to match a competitor's pricing is a clear indication of a price war.

Hammich,a Burger Restaurant,recently Announced Plans to Drop the Price of Its