MANAGEMENT

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BUISENESS MANAGEMENT

MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which two of the following are likely to encourage customers to pay a higher price for a product?Select two answers:If the business has:
A
A successful brand name
B
Many competitors offering similar products
C
Products which are considered low quality
D
Made the product available in many outlets
E
A unique product
Explanation: 

Detailed explanation-1: -Supply and demand for products, services, currencies, and other investments creates a push-pull dynamic in prices. Prices and rates change as supply or demand changes. If something is in demand and supply begins to shrink, prices will rise. If supply increases beyond current demand, prices will fall.

Detailed explanation-2: -1. Price skimming. Skimming involves setting high prices when a product is introduced and then gradually lowering the price as more competitors enter the market.

Detailed explanation-3: -Types of Pricing Strategies Companies that use a price skimming strategy will typically set prices relatively high versus competitive products. Contrarily, companies that use a penetration pricing strategy will usually price their new products lower than competitive products.

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