Why Is The Low-price Strategy Unappealing To Investors?
In the general scenario for investors, lower prices do not extract a very favourable response out of investors. Generally such strategies have a strong tendency of building an association with the prospect of lower profits – the established notion, although not completely true is so menacingly staunch for investors that even additional volume cannot make up for the conjectured demerits of its impact. For starters, the most pertinent place to espouse this very argument is the scenario of the stock market. If one attempts to observe a company’s stock after its announcement of an “across-the-board-price-cut” with all other factors being constant, the stock price of that very company would always plunge lower as a direct consequence. On the contrary, whenever an enterprise announces a price raise in any of its products, the stock market beholds the stock price of that very company elevating in accordance. This very phenomenon clearly reflects the cynical mindset of investors regarding a lo
