Lambretti and Sons is an international manufacturer and retailer of luxury pens and writing instruments based in Rome, Italy. The company has been in business for 100 years and has a reputation as being "the best of the best." Their pens are status symbols used by high-profile businessmen and celebrities. In recent years, several other luxury pen manufacturers have entered the market. SwissPen's goods are less expensive and are of a quality equivalent to that of Lambretti and Sons. Should Lambretti be overly worried about competition from SwissPen?
A)No, because price is not a factor that affects the buying choices and preferences of Lambretti's clients.
B)Yes, because regardless of prestige, customers will always go with a company that offers products for a lower price.
C)No, because the brand's long history and singular reputation allow it charge higher prices for its products.
D)Yes, because brand loyalty only goes so far, and SwissPen offers novelty, a very desirable attribute.

Question

Quizplus · Accepted Answer

Lambretti and Sons' long history and reputation as a luxury brand allow it to maintain higher prices, as their clients value prestige and status over cost.

Lambretti and Sons Is an International Manufacturer and Retailer of Luxury