Why would a company choose not to grow or expand despite great demand for their product?
A) Create greater perceived value for their product
B) Increase the cost of their product
C) Create greater demand for their product
D) All of the above

Question

Quizplus · Accepted Answer

D) Companies that use this strategy are influencing customers to value their product more than they would if the product were produced in the quantity sufficient to meet demand. In other words, they are creating scarcity for their product.

Why Would a Company Choose Not to Grow or Expand