Question

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use

Answer 1

Answer: Competitive effect

Explanation:

This is a scenario whereby firms in a particular market sells their products at a price that the customers are used to. In a market that produces identical goods, when the consumers find out that there is a particular store or firm selling goods at a cheaper rate, consumers tend to buy from such firm.

This was the strategy used by Home Depot stores when they entered the Canadian market. The consumers were already used to the Canadian products and Home Depot had to reduce its price to enable people purchase it's products.

Answer 2

Answer:

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. It employed Competitive effect To get people to try Home Depot by deliberately selling merchandise below the price that the Canadians did.

Explanation:

The competitive effect is the concept that allows a certain individual or organization to become attractive to customers under a scenario of pre-established markets by reducing its cost or prices making the organization competent in the market by driving the rest of the organizations in the industry compete with their costs or prices.