Correct Answer: In the light of competition, it may be seen that competitors may initiate price changes If the cutting off on prices does not affect the company, then the current pricing strategy itself can be continued to maintain the profitability of the company However if the price change on one firm is affecting the other, then it can: areduce the product price at par with competitors’ price or below competitors’ price or b Provide added advantage to the existing product like better quality, or ‘a buy one get one free’ offer or cProvide better quality of the product at a higher price thereby not being at par with the competitors
