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 higher price- value position
B)moving its brand into a less competitive position
C)negatively positioning its product
D)narrowing its target market
E)creating a "fighter brand"

Question

Quizplus · Accepted Answer

By improving the quality and increasing the price, the firm is positioning its brand to be of higher value and quality than the competitor's product, which justifies the higher price. This is a strategy to differentiate the brand from the competitor's product and create a perception of superior quality, which could potentially attract customers who are willing to pay a premium for higher quality.

When a Firm Improves the Quality and Increases the Price