Pricing decisions must be given careful consideration when a firm is introducing a new product or planning a short- or long-term price change because
A) if the price is too low, sales and profitability will increase.
B) low pricing indicates good quality to all consumers.
C) high pricing would lead to increased profits for the firm.
D) a successful pricing strategy is important for the profitability of the firm.

Question

Quizplus · Accepted Answer

If consumers or organizational buyers perceive a price to be too high, they may purchase competitive brands or substitute products, leading to a loss of sales and profits for the firm.

Pricing Decisions Must Be Given Careful Consideration When a Firm