When serious price wars arise occur among competing marketing service providers all competing service providers profit margins are reduced by price competition.
A product or service can compete with other goods or services on the market only on the basis of price in a process known as price competition. In order to boost sales of their various products and establish themselves as market leaders by having a sizable customer base, competitor businesses frequently engage in price competition.
The profit will be lower if the market is highly competitive. This is due to the fact that customers would prefer the cheapest businesses.
Therefore, when serious price wars arise occur among competing marketing service providers all competing service providers profit margins are reduced by price competition.
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