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Questions and Answers
What is the purpose of setting the price artificially low for products and services?
What is the purpose of setting the price artificially low for products and services?
- To maintain the market share
- To discourage competition
- To increase the profit margin
- To attract more customers (correct)
What is the subsequent action after gaining market share by setting the price artificially low?
What is the subsequent action after gaining market share by setting the price artificially low?
- Maintain the low price to retain customers
- Expand the product line to attract new customers
- Increase the price to boost profit margins (correct)
- Change the marketing strategy to target a different segment
What effect does setting the price artificially low have on the competition?
What effect does setting the price artificially low have on the competition?
- Discourages competition from entering the market (correct)
- Leads to aggressive pricing wars with competitors
- Forces competition to improve product quality
- Encourages competition to innovate and differentiate
What is the long-term implication of increasing the price after gaining market share?
What is the long-term implication of increasing the price after gaining market share?
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