INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, customers may feel quality is too low.
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Yes, customers may feel quality is too high.
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No, the lower the price, the greater the product’s appeal.
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No, the lower the price, the more willing the customer is to buy.
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Detailed explanation-1: -Can prices be set too low? Yes; customers may feel quality is too low. Quality and price are often considered the same by customers. Higher priced items are usually perceived as high-quality products.
Detailed explanation-2: -If the price is too low, demand will exceed supply, and some consumers will be unable to obtain as much as they would like at that price-we say that supply is rationed….
Detailed explanation-3: -If a consumer believes they are getting a good deal, then lower prices can help get you the sale. On the other hand, low prices can also give the impression that the product is of low quality.
Detailed explanation-4: -What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.
Detailed explanation-5: -Lowering prices is one of the most common strategies that companies use to increase market share for a product. If their competitors also lower their prices, a price war begins. Price wars are most common in industries where there is both heavy competition and several comparable products.