ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Enables the firm to expand its overseas markets
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Allows pricing to be differentiated and increased
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Allows a firm to focus on its marketing but not its pricing policy
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Forces the firm to accept the industry average price
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Detailed explanation-1: -2 How does branding help in differential pricing? Brand name helps in creating an image among the consumers about the product quality. It helps customers in differentiating products of different firms. Marketers can charge different prices and having a good brand image the organisation can charge premium prices.
Detailed explanation-2: -Why is product differentiation important? The goal of product differentiation is to create a competitive advantage or to make your product superior to alternatives on the market. In other words, you don’t just want to stand out from the competition, you want to stand above it.
Detailed explanation-3: -A differentiated product can increase brand loyalty and even survive a higher price point. If a product is perceived to be better in some way than its competitors, consumers will consider it worth the higher price.