How To Fight A Price War

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Diegojoachin
D
Diegojoachin
Community Contributor
Quizzes Created: 1 | Total Attempts: 101
| Attempts: 101 | Questions: 10
Please wait...
Question 1 / 10
0 %
0/100
Score 0/100
1. Si estamos en una guerra de precios hay que entender que podemos usar varias opciones que no implican mover el precio para defendernos y reconocer que algunas veces es mejor ceder y buscar otros modelos de negocio (como 3M que el 40% del ingreso a cinco años viene de productos nuevos).

Explanation

In the given statement, it is mentioned that if we are in a price war, we should understand that there are various options available to defend ourselves without necessarily changing the price. It also suggests that sometimes it is better to compromise and explore other business models. The example of 3M is given to support this statement, stating that 40% of their income comes from new products. Therefore, the correct answer is true, as the statement emphasizes the importance of considering alternative strategies and being open to innovation in a price war situation.

Submit
Please wait...
About This Quiz
How To Fight A Price War - Quiz

Indique las respuestas correctas de acuerdo al documento escrito por Akshay R. Rao, Mark E. Bergen, Scott Davis en HBR de Abril de 2000.

2. Segun la lectura ¿cuando podría ser inteligente pelear la guerra de precios?

Explanation

The correct answer is "todas las anteriores" because all of the mentioned conditions are factors that could make it intelligent to engage in a price war. Identifying a large and growing segment of price-sensitive customers, having a cost advantage, having more financial resources than competitors, being able to achieve economies of scale by expanding the market, and neutralizing or eliminating a rival through barriers to entry or re-entry are all strategic advantages that could make a price war a smart decision.

Submit
3. ¿Que es lo primero que hay que hacer en una guerra de precios?

Explanation

The correct answer is to diagnose the causes and characteristics of the price war in order to strategize and decide whether to fight it, avoid it, or potentially initiate it. This is because understanding the underlying reasons and dynamics of the price war is crucial in determining the best course of action. It allows for informed decision-making and the development of an effective strategy to navigate the situation.

Submit
4. AT&T, Xerox y Compaq son ilustraciones que la lectura usa para argumentar que las guerras de precios se han convertido comunes porque los gerentes ven un cambio de precio como una acción fácil, rápida y reversible.

Explanation

The given answer explains that the statement is false because it mentions that the companies AT&T, Xerox, and Compaq are used as examples in the reading to argue that price wars have become common because managers see a change in price as an easy, quick, and reversible action. However, the answer states that it is actually AT&T, E-Trade, and others that are mentioned in the reading, but it is true that managers change prices.

Submit
5. Para responder una guerra de precios manteniendo intacto el precio, el ejemplo del Ritz en Malaysia ilustra como alertar a los clientes de perdida de calidad de productos de la compentencia enfatizando las consecuencias negativas.

Explanation

The explanation for the given correct answer is that the example of the Ritz in Malaysia demonstrates how to respond to a price war while keeping the price intact. It suggests alerting customers to the loss of quality in the competitor's products and emphasizing the negative consequences. This strategy allows the Ritz to maintain its price while still attracting customers by highlighting the superior quality of their own products.

Submit
6. Existen soluciones diplomaticas, pero usualmente son imposibles de realizar por amenazas de colusión en precios y efectos regulatorios.

Explanation

La afirmación de que existen soluciones diplomáticas pero que generalmente son imposibles de realizar debido a amenazas de colusión en precios y efectos regulatorios es verdadera. Esto sugiere que, aunque en teoría podría haber soluciones diplomáticas para resolver conflictos, en la práctica estas soluciones pueden ser difíciles de implementar debido a la presencia de acuerdos secretos entre empresas o a la interferencia de regulaciones que dificultan la resolución pacífica de los problemas.

Submit
7. La lectura ofrece un esquema para tener un buen diagnostico. Este esquema es:

Explanation

The correct answer is customer issues, company issues, competitor issues, contributor issues. This is because the reading provides a framework for conducting a good diagnosis, and this framework includes considering the issues related to customers, the company itself, competitors, and contributors. The options of interpreting intentions, evaluating quality, co-opting contributors, and attempting to introduce new products are not mentioned in the given reading and are therefore not part of the provided framework.

Submit
8. La lectura mencionaba el caso de NutraSweet.

Explanation

The given correct answer is "Verdadero" (True). This suggests that the reading did mention the case of NutraSweet. The statement "Falso, eso se vió en clase" (False, that was seen in class) implies that the information about NutraSweet was covered in class, confirming the truthfulness of the answer.

Submit
9. Change customers' choices. Modify only certain prices. Fighting brand. Cut prices in certain channels.

Explanation

These options suggest that the strategies mentioned are selective ways to adjust prices specifically for the segment that is under threat. This indicates that the company is targeting a particular group of customers and making changes to their pricing in order to maintain their market share and competitiveness. These strategies are likely being implemented as a response to a price war in the industry.

Submit
10. ¿por qué empiezan las guerras de precios?

Explanation

The correct answer is "precios altos y márgenes (otras dos opciones)". This answer suggests that wars of prices start because of high prices and margins. It implies that when prices are perceived as high and margins are large, someone might try to gain market share by reducing their own margins and engaging in a price war with competitors. This explanation aligns with the concept of price competition and the strategic decision to lower prices to attract customers and increase market share.

Submit
View My Results

Quiz Review Timeline (Updated): Jan 4, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jan 04, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 23, 2012
    Quiz Created by
    Diegojoachin
Cancel
  • All
    All (10)
  • Unanswered
    Unanswered ()
  • Answered
    Answered ()
Si estamos en una guerra de precios hay que entender que podemos usar...
Segun la lectura ¿cuando podría ser inteligente pelear la...
¿Que es lo primero que hay que hacer en una guerra de precios?
AT&T, Xerox y Compaq son ilustraciones que la lectura usa para...
Para responder una guerra de precios manteniendo intacto el precio, el...
Existen soluciones diplomaticas, pero usualmente son imposibles de...
La lectura ofrece un esquema para tener un buen diagnostico. Este...
La lectura mencionaba el caso de NutraSweet.
Change customers' choices....
¿por qué empiezan las guerras de precios?
Alert!

Advertisement