iding a reputable service. Cut rate pricing only marginally
effects their client base because there is little means to make their
pricing publicly known, and only drastic, unwarranted increases sends
clients packing. Conversely, in the post-advertising era, XYZ must
always be aware of market pricing because the demand curve is steeper and
more volatile. Therefore the client base of XYZ is not stable as in the
previous example and measures must be taken to keep prices competitive
with other firms regardless of cost inferences. The result is the
necessity of a more aggressive policy regarding new client
...