Assessing/Responding to Competitor's Price Changes (Fig.11.1) 13-10 No Hold current price; Has competitor continue to monitor cut price competitor's price Yes Will lower price negatively affect No our market share Reduce price and profits LYes No Raise perceived quality Can/should effective action be taken？ Improve quality and Yes increase price Launch low-price “fighting brand" 制计价蜀易大孝 国际商学院市场营销学系Assessing/Responding to Competitor’s Price Changes (Fig. 11.1) 13 －10 13 －10 Has competitor cut price ? Hold current price; continue to monitor competitor’s price No Will lower price negatively affect our market share and profits ? Yes Can/should effective action be taken ? Yes No No Yes Reduce price Raise perceived quality Improve quality and increase price Launch low-price “fighting brand