A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions. a. trueb. false

Question

Business

Katie Meyer

21 December, 05:27

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions. a. trueb. false

+1

Answers (2)

Know the Answer?

Kira Bennett · Answer 1

false

Explanation:

I strongly disagree because the actor frequently reducing the price to gain market would attract more customers from his competitors.

Agustin Shea · Answer 2

The correct answer is letter "A": true.

Explanation:

Predatory pricing occurs when a company sets its product price below what competitors are charging with the objective of getting them out business and increase the company's market share. Eventually, the predatory business could take over a market earning more profits. Though, that situation does not always happen.

Companies known to be price predators are not taken as a reference by market leaders when they lower their prices because price predators lack credibility.