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Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main
Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the products sales in relation to industry sales. Forouzan has obtained a list of prices that tell her how much similar products are being sold for. Forouzan is particularly interested in the industrys top competitor because it has so much market share. After determining the price of its major competitor, Forouzan decided to undercut their price by several dollars. She believes putting a sign in their stores that features her companys discounted price next to the price of their major competitor for the same product will show consumers that Forouzans company offers them a much better deal. However, she knows that she has to be careful not to misrepresent the competitors price in the process.Refer to Scenario Which of the following pricing strategies is Forouzan planning to adopt?
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