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This behaviour is likely to drive a company to a below-average performance because it does not take into account the customer's point of view and the company's strategy.
Marketers, first of all, have to consider price boundaries such as the price floor, the price ceiling and the optimum price. Price floor (or minimum price) is determined by the cost of the product or service. The competitive prices for comparable products create a price ceiling. In fact, if competitors do not adjust their prices in response to rising costs, management will be severely constrained in its ability to adjust prices accordingly...
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