5 questions on "Pricing Strategies: Additional Considerations - Price Changes"

Name 3 types of starting price changes?
1. Starting price cuts
2. Starting price increases
3. Buyers reaction
When can companies decide to start with price cuts? Name 3.
1. When demand for their product falls
2. When economy faces downturns
3. When firm wants to follow low-cost strategy to gain more market share
When can companies start with price increases? Name 2.
1. Over demand and inability to supply the market
2. Higher production costs
What is important to be aware of when increasing prices? Name 2.
1. Accompanied by communication
2. Should be reasonable and fair compared to competitors
What 4 options are there when competitors decrease their price to cut your profits?
1. Reduce price as well and match competitors (only when market share is lost when price stays the same) and quality should be the same.
2. Keep the same price but increase perceived value of the product
3. Increase the quality of the product which increases perceived value and justifies the higher price.
4. Presenting a low-price brand or adding a low-price item to the line
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