ENTREPRENEURIAL OPERATIONS
QUALITY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A premium price creates ____
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perception that the products/services must have a higher value than competing products because the prices are higher.
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perception that the products/services must have a higher value than competing products because the prices are lower.
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perception that the products/services must have a lower value than competing products because the prices are lower.
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None of the above
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Explanation:
Detailed explanation-1: -Premium pricing (also called image pricing or prestige pricing) is the practice of keeping the price of one of the products or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.
Detailed explanation-2: -Premium pricing means a retailer is consistently pricing their product higher due to competitive advantage. Often clever branding, marketing and messaging that appeals to their customer base. The strategy is mostly used when a company has a solid and strong brand.
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