If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.
A) earn lower profits; gain higher profits
B) earn higher profits; lose profits
C) earn higher profits; gain more market share
D) lose profits; gain more market share
E) lose profits; gain higher profits

Question

Quizplus · Accepted Answer

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, it can charge a higher price and still gain more market share, as customers will be willing to pay more for a better product or service. Alternatively, the company can charge the same price and gain more market share, as customers will be more likely to choose the superior offering over the competitor's. Either way, the company can earn higher profits as a result.

If the Company's Offer Delivers Greater Value by Exceeding the Competitor's