Regarding quality, which statement is not true?
A)Businesses offering premium quality goods usually have larger market share and are early entrants into their market.
B)Quality is positively and significantly related to higher return on investment for almost all kinds of market situations.
C)A strategy of quality improvement usually leads to increased market share but at a cost in terms of reduced short-run profits.
D)High goods quality producers can usually excel by charging low prices.

Question

Quizplus · Accepted Answer

High quality goods usually come at a higher price point, so it is unlikely that producers can excel by charging low prices. This statement goes against the basic principles of economics and the law of supply and demand.

Regarding Quality, Which Statement Is Not True