Drawback= Price Elastic

Question 1

1

Answer 1

Due to poor customer service a business’s product may become price elastic

Question 2

2

Answer 2

Leading to customers being less loyal to the brand

Question 3

3

Answer 3

Therefore, if price increases there will be a significant fall in demand

Question 4

4

Answer 4

Leading to pressures to keep prices low

Question 5

5

Answer 5

Leading to lower revenue

Question 6

6

Answer 6

Reducing gross profit margins