Why is it risky for a firm to build its value proposition on price alone?

1. A firm that competes on price alone is managed as though it sells a commodity. 2. A commodity is differentiated only by price, so it has nothing else holding the buyer. 3. Customers who value only price move to a competitor as soon as that rival prices lower. 4. Strategies built on customer relationships and service are far harder for rivals to copy. 5. Price caps are not the issue here, since the danger comes from rivals rather than regulators. 6. Buyers do not always read a low price as poor quality, and cutting price does not raise production cost. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.1 The Marketing Concept_