When a firm improves the quality and increases the price of a product in reaction to a competitor making a price reduction,the firm is ________.
A) moving its brand into a less competitive position
B) negatively positioning its product
C) moving its brand into a higher price-value position
D) creating a "fighter brand"
E) narrowing its target market

Question

Quizplus · Accepted Answer

By increasing the quality and price of a product, a firm is positioning its brand into a higher price-value position. This indicates that the firm is focusing on providing superior quality and value to its customers, rather than solely competing on price.

When a Firm Improves the Quality and Increases the Price