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Written by:

Nicholas P


Date added:

March 25, 2015








No of pages / words:

9 / 2305


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In some situations, your competitor may force you to make this decision, because it has cut prices itself or entered your market at a much lower price point. But in other situations, companies decide to cut prices voluntarily, with no prompting from competitors and?as we show in this section?hardly any prompting from customers either...
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They decide to cut their prices out of sheer devotion to the idea that lower prices will revive their customers' wavering devotion and ultimately make the company better off. To defend the cuts, they cite changes in the competitive landscape, the convictions of upper management, a willingness to share cost savings and productivity improvements with customers, and the passage in their Economics 101 textbook that said lower prices result in higher volumes...
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