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Your company manufactures a quality line of home kitchen appliances, refrigerators, stoves, dishwashers, and so forth, and you are highly competitive with companies such GE, Frigidaire, KitchenAid, Whirlpool, LG, and others. The market is quite price sensitive.

You've just learned that your primary competitor has cut their prices to the consumer by 7%. What might be some reasons that would support their decision to make a price reduction? What should be your thoughtful reaction?

 

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