The price cutting technique leads to various possible traps including __________?
Correct answer: D. all of above
- A. price-war traps
- B. shallow-pockets traps
- C. low-quality traps
- D. all of above
Explanation
Price cutting can trigger a price war, expose a firm with shallow pockets to cash-flow pressure, and make customers suspect low quality. Therefore, all three listed effects are recognised traps.
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