Your company manufactures a quality line of home kitchen appliances, refrigerators, stoves, dishwashers, etc -- and you are highly competitive with companies such as KitchenAid, JennAir, and others. The market is quite price sensitive.

You've just learned that your primary competitor has just 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?

150 words limit.