As the marketing director for a highly respected menswear manufacturer, you've been asked to offer your insights on pricing and positioning the company's first line of men's cologne. Your company's cologne will be sold in department stores, and for a number of reasons, you've suggested pricing it slightly higher than comparable competitors. What is the disadvantage to this strategy?
A) It is understood that there will be less demand for higher-priced products.
B) It is understood that you will earn a lower gross profit margin with higher-priced products.
C) You will need to engage in a costly advertising campaign to promote these higher-priced products.
D) Given that colognes and fragrances are a category of product that is subject to competitive pricing, you will be forced to lower your prices eventually.
Correct Answer:
Verified
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