Product costs do not play as critical a role in pricing as the market's perception of the value differentiation.

Question

Quizplus · Accepted Answer

Product costs are important in determining profit margins, but ultimately it is the market's perception of the value and differentiation of the product that determines pricing. Customers are willing to pay more for a product they perceive as more valuable or unique, regardless of its production costs.

Product Costs Do Not Play as Critical a Role in Pricing