A decision to position the product on high-performance quality will mean that the ________.
A) seller must charge a higher price to cover higher costs
B) seller must charge a lower price to attract more customers
C) producer must step down production
D) marketer must boost derived demand in the market
E) break-even volume will be fairly low

Question

Quizplus · Accepted Answer

When the decision is made to position the product on high-performance quality, it means that the product should have superior quality compared to the competition. Achieving such quality may come at an extra cost to the producer, and the seller must charge a higher price to cover these costs. Therefore, the best choice is A, which states that the seller must charge a higher price to cover higher costs.

A Decision to Position the Product on High-Performance Quality Will