Competitive Pricing Strategy Based on Consumer Stockpiling and Consumption Acceleration Behaviors

Studies into price promotion mainly concern about consumer responses to this much favorable consumption incentive. However, relatively little effort was on the competitive responses of their counterparts to this hostile strategy by the initiator. The current study intends to examine possible strategies of the enemy firm to respond to such a pricing challenge. In this study, authors are going to explore the the best pricing strategy of firm B to respond to firm A´s price promotion at different observations.