In setting prices for products and services, managers may attempt to charge what the customer is willing to pay however, too high a price may ________.
A) deter a customer from purchasing a product and seek alternatives
B) increase demand and demand for the product
C) indicate supply is too plentiful
D) decrease a competitor's market share

Question

Quizplus · Accepted Answer

If the price is too high, customers may choose to not purchase the product and look for alternatives, which could result in lost sales and revenue for the company. Therefore, setting prices too high can deter customers from purchasing the product. The other options do not accurately describe the consequences of setting prices too high.

In Setting Prices for Products and Services, Managers May Attempt