Question

Bright Inc. is a toothpaste manufacturing company that is facing intense competition from its rivals. In order to encourage higher consumption of its products as well as minimize brand switching among its existing consumers, Bright introduced sweepstakes as a consumer sales promotion strategy. However, its rivals retaliated by introducing deals such as a featured price which is lower than the regular price, buy one, get one free offers, and large package offers that give a percentage more free. This scenario best illustrates a ________.A. substitutionB. rivalryC. opportunityD. integration

Answer 1

B. Rivalry

Step-by-step explanation:

Because the firm is in perfect competition, therefore they face competition from many firms. In order to encourage higher consumption of its products as well as minimize brand switching among its existing consumers, Bright introduced sweepstakes as a consumer sales promotion strategy, to give them a distinctive position in the market. However, its rivals retaliated by introducing deals such as a featured price which is lower than the regular price, buy one, get one free offers, and large package offers that give a percentage more free. This strategy will help the competitor to capture more market than bright Inc. and this is done for rivalry