Which of the following is true of price changes?
A) Overdemand leads to companies initiating price cuts.
B) Changes in price do not affect a brand's image.
C) Customer reaction to price changes is not as important as competitor reaction.
D) A drop in price can adversely affect how consumers view the brand.
E) Excess capacity is a factor which causes increases in price.

Question

Quizplus · Accepted Answer

A drop in price can be associated with quality degradation, loss of exclusivity or even desperation to move unsold stock. This can adversely affect how consumers view the brand.

Which of the Following Is True of Price Changes