If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________.
A) interest; less value to the customer
B) volume; lower margins and profits
C) promotional value; less customer value
D) operational opportunity; less product value
E) place value; more customer defections

Question

Quizplus · Accepted Answer

If a price is set too high, it will not generate much volume as customers will not be willing to pay such a high price. On the other hand, if a price is set too low, it may generate high volume, but the company may not make enough profit due to lower margins. Therefore, setting the right price that balances between generating enough volume and maintaining a profitable margin is crucial for business success.

If a Price Is Set Too High, It Will Not