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A reduce-focus pricing strategy calls for price increases with the intent of reducing volumes and market share in exchange for higher margins. t/f

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User Robob
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8.3k points

1 Answer

2 votes

Final answer:

A reduce-focus pricing strategy does not aim to increase prices, as doing so in a competitive market with identical products would drive customers to competitors and lead to sales loss.

Step-by-step explanation:

The statement that a reduce-focus pricing strategy calls for price increases with the intent of reducing volumes and market share in exchange for higher margins is false.

In a highly competitive market where a product is identical to the offerings of many other firms, increasing the price would likely lead to customers switching to competitors, resulting in a loss of sales for the firm that increased prices.

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