A company has developed the prototype of a mobile phone that it plans to launch in the next few months. The phone comes equipped with the most advanced technological features. As part of its test marketing efforts, the company allows customers to examine and use the prototype and also gathers feedback regarding product features and price. The results of this test marketing effort show that customers are willing to pay at least $500, considering the phone's various features. As such, the company has discovered customers' ________.
A) last paid price
B) expected future price
C) lower-bound price
D) upper-bound price
E) typical price

Question

Quizplus · Accepted Answer

The test marketing effort has revealed that customers are willing to pay at least $500 for the phone, which represents the lower-bound price. This means that customers are not willing to pay less than $500 for the phone, but they may be willing to pay more. The answer choices "last paid price," "expected future price," "upper-bound price," and "typical price" are not relevant to the information provided in the scenario.

A Company Has Developed the Prototype of a Mobile Phone