Knowledge@wharton

When it comes to price wars Wharton marketing professor Z. John Zhang can’t help but notice that companies in the West and companies in China are quite literally worlds apart. In the West Zhang says the outbreak of a price war is viewed as the failure of managerial rationality. In China the outbreak of a price war is considered a legitimate and effective business strategy. In a recent paper Zhang and Dongsheng Zhou a marketing professor at the China Europe International Business School in Shanghai analyze two price wars that took place in China in the mid-1990s. See acast.com/privacy for privacy and opt-out information.