A producer may offer a margin different from that offered by competitive brands if:
A) If the customers associate superior benefits with the product.
B) The product is imported.
C) Manufacturing cost differences jeopardize the manufacturer's profits.
D) All of the above.
E) Producers should not deviate from the margin offered by competitive brands.

Question

Quizplus · Accepted Answer

If the customers associate superior benefits with the product, the producer can offer a higher margin. This is because the customers are willing to pay more for the perceived value they receive from the product. If the producer offers a higher margin without providing any additional benefits, the customers may not be willing to pay the extra amount, which can lead to a decline in sales.

A Producer May Offer a Margin Different from That Offered