A new company has said its main priority is gaining marketshare how is this likely to affect their prices?

A. They will likely lower prices someone to attract customers

B. They will set extra high prices but then often run good sales

C. They will spend heavily on advertising so that they will have to change higher prices to cover those extra expenses

D. Market share has nothing to do with changing prices

Question

Business

Beckett Roach

4 May, 10:43

A new company has said its main priority is gaining marketshare how is this likely to affect their prices?

A. They will likely lower prices someone to attract customers

B. They will set extra high prices but then often run good sales

C. They will spend heavily on advertising so that they will have to change higher prices to cover those extra expenses

D. Market share has nothing to do with changing prices

+2

Answers (1)

Know the Answer?

Paxton Pierce · Answer 1

A. They will likely lower prices to attract customers

Explanation:

Market share is the percentage of a market that à particular entity has a foothold of.

For a new company to gain a reasonable foothold in the marketshare, they would have to lower prices to attract customers.

This strategy is especially effective because they would get a certain percentage of the market base because of the reduced price.