D.THE OWNER’S PLAN—TO LOWER PRICES TO ATTRACT CUSTOMERS—ASSUMES THA...

8. d.The owner’s plan—to lower prices to attract customers—assumes that some customers will choosethe lower price (choice a), that the quality of Morning Glory’s products is comparable to its competi-tor (choice b), that Morning Glory can afford to offer lower prices (choice c), and that its competitorwill also not lower its prices (choice e). The plan does not rest on any assumptions about the loyaltyof Morning Glory customers (choice d). Indeed, there is evidence that the customers are notloyal,because Morning Glory has already lost 50% of its business.