If a company sets its price too low for a product or service, or reduces its unit selling price,
A) customers may not purchase the product or service due to perceived decrease in value.
B) demand and thus, sales of the product or service will increase immediately.
C) customers will most likely not be affected by a change in the unit selling price.
D) customers will purchase the product or service immediately assuming that the unit selling price cannot decline any further.

Question

Quizplus · Accepted Answer

Setting a price too low can lead to a perception of lower quality or value, deterring customers from purchasing.

If a Company Sets Its Price Too Low for a Product