Which of the following can be the overall effect when a good or service is priced higher than competitors?
A) There will be an implication of higher quality standards.
B) There will be greater demand for the product.
C) Sales will start slow, but increase over time.
D) There will be a larger market size, but smaller profit.
E) There will be a smaller market and smaller profit.

Question

Quizplus · Accepted Answer

Pricing a good or service higher than competitors can create an implication of higher quality standards. Consumers may perceive that the higher price indicates better quality, which can lead to increased demand and an overall positive effect on sales and profit. However, it's important to note that this may not always be the case and other factors such as brand recognition and marketing efforts also play a role in consumer behavior.

Which of the Following Can Be the Overall Effect When