A pricing objective of increasing sales can have the disadvantage of leading to price cuts that may Blank______.

Question

Multiple choice question.

increase the market share of competitors

encourage other firms to enter the market

create new pricing constraints

reduce the revenues of other products in the firm's line

Answer 1

The best answer to fill in the blank is:

reduce the revenues of other products in the firm's line.

This is because aggressive pricing aimed at increasing sales can lead to lower prices across a product line, potentially impacting overall revenue and profitability.