Braden’s ice cream shop is losing business. he knows that customers are no longer choosing his product because a competing product has become less expensive, yet he has refused to lower his prices. what has happened to braden’s business?
Affected by the pricing decision of its competitor
The business will have to lower its product's price because of competitor's similar quality products available at lower prices in the market. This will again help in recapturing the market share which Braden has loosen due to poor pricing decision making. Furthermore, the company must keep introducing new products over time to keep its prduct more attractive option to customers and will also help in increasing brand recognition.
Braden's customers are using there freedom vote to indicate their choice, the type of decisions consumers make in a Mixed Economy.
Braden's foot fall has been reduced in his ice cream parlour. Some of the main reasons can be :-
1. Quality Maintained - It can be a possibility that braden has maintained the standard of the product and that is why braden refuses to lower the prices
2. Services - Customer gets attracted towards the additional services provided. Competitor would have better offerings for the customer.