Abstract
This study empirically examines the profit impact of different strategies under four different types of competition: 1. Low-intensity price and promotion competition; 2. Price competition; 3. Promotion competition; and 4. High-intensity price and promotion competition. The study finds that broad product scope is a key determinant of a firm's profitability in low-intensity price and promotion competition, price competition, and high-intensity price and promotion competition. However, under promotion competition, quality-image orientation was the most profitable strategy.
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