To create value for the consumer, firms seek to
A) lower costs and lower price
B) increase price to match the competition and standardize the features
C) lower costs and increase consumer willingness to pay
D) increase price and remove high-cost features

Question

Quizplus · Accepted Answer

Lowering costs allows for the firm to lower the price, which creates value for the consumer. However, simply lowering the price does not necessarily create value unless consumers perceive the product as being of high quality or having unique features that differentiate it from competitors. By increasing consumer willingness to pay through effective marketing and creating a brand image, firms can create value for the consumer even at a higher price point.

To Create Value for the Consumer, Firms Seek to