Firms and brands that continually attempt to operate in the ________ quadrant do not survive over the long run as customer trust is damaged. Some firms use price skimming strategies, especially on product introductions, even when all the bugs have yet to be worked out of the product.
A) high price, high benefits
B) high price, low benefits
C) low price, high benefits
D) low price, low benefits
E) low price, no benefits

Question

Quizplus · Accepted Answer

Firms and brands that operate in the high price, low benefits quadrant do not survive over the long run as customer trust is damaged. This is because customers expect to receive value for the high price they pay. Additionally, firms that use price skimming strategies, where they charge a high price for an unproven product, can damage customer trust if the product has not been fully tested and does not live up to the price charged.

Firms and Brands That Continually Attempt to Operate in the ________