Pricing below prevailing market price can succeed for a firm if ________.
A) the public does not learn that the firm's product is indeed inferior
B) the firm can offer a product of acceptable quality
C) the firm has effective promotional tactics and gimmicks
D) the firm can effectively criticize its competitors' products

Question

Quizplus · Accepted Answer

Pricing below prevailing market price can succeed for a firm if the firm can offer a product of acceptable quality. This is because customers are more likely to choose a product that is both affordable and of good quality. The other choices may contribute to short-term success, but offering an inferior product or using gimmicks and criticism of competitors' products is typically not sustainable in the long run.

Pricing Below Prevailing Market Price Can Succeed for a Firm