Product pricing is made difficult because:
A)Customers that do not understand the value proposition will search for the lowest priced product, making it a commodity.
B)Customers are confident that if one company cannot match pricing on a product, then another company will.
C)Customers assume that location of manufacturing and costs of shipping are constant.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the options listed above contribute to the difficulty in pricing a product. When customers do not understand the unique value proposition of a product, they default to seeking out the lowest price, which turns the product into a commodity. Additionally, customers are aware that if one company cannot match pricing, another company likely will. Finally, customers often assume that the location of manufacturing and shipping costs are constant, which can make it difficult to adjust pricing accordingly.

Product Pricing Is Made Difficult Because