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Most people tend to react to a competitor undercutting
Most people tend to react to a competitor undercutting
Most people tend to react to a competitor undercutting their price by matching him so as not to lose market share. What happened when you tried that in the pricing scenario (if you didn’t try it before, try it now)? Explain why it wasn’t a good idea. Note: use either Scenario B.2 or C for this question. Indicate which you used.
How did the competitor’s strategy in Scenario C affect your strategy
How did the competitor’s strategy in Scenario C affect your strategy
How did the competitor’s strategy in Scenario C affect your strategy and results? Note: although you may not have consciously considered the competitor’s actions, his prices affected the demand curve you faced. That demand curve affected your pricing decisions. How did the competitor’s behavior affect your prices and profits? (Hint: compare prices and profits from Scenario B.2 to the Scenario C).
Based on your observations of the competitor in Scenario C
Based on your observations of the competitor in Scenario C
Based on your observations of the competitor in Scenario C, what is his strategy? How does it compare with yours? Why might a competitor implement such a strategy?