The price cut technique which results in increasing market share but less loyal customers in market is classified as ___________?
Correct answer: B. fragile-market-share trap
- A. low-quality trap
- B. fragile-market-share trap
- C. shallow-pockets trap
- D. price-war traps
Explanation
The fragile-market-share trap describes gaining market share through price cuts while attracting customers who are not loyal and may leave when another seller offers a lower price. It differs from the low-quality trap, which concerns customers' perceptions of quality.
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