The concept of the lowest ________ means that a seller can charge a higher price if they can convince the customers that price is only a small part of the total cost of obtaining, operating, and servicing the product over its lifetime.
A) life cycle cost
B) convenience pricing
C) prestige pricing
D) key price points
E) total cost of ownership

Question

Quizplus · Accepted Answer

The concept of the lowest total cost of ownership means that a seller can charge a higher price if they can convince the customers that price is only a small part of the total cost of obtaining, operating, and servicing the product over its lifetime. This is because customers are likely to choose products that are less expensive in the short run, but more expensive in the long run, without considering the total cost of ownership. By emphasizing that their product has a lower total cost of ownership, sellers can justify a higher price.

The Concept of the Lowest ________ Means That a Seller