Marco wants to buy a new car that is of good quality and available at an affordable price. After exploring the available options, Marco decides to purchase a car made by a popular car manufacturer, which has a high retail price but offers very low operating and maintenance costs. In this scenario, the pricing strategy employed by the car manufacturer is ________.
A) penetration pricing
B) price skimming
C) target ROI
D) competitor-based pricing
E) value pricing

Question

Quizplus · Accepted Answer

The car manufacturer is offering a high-quality product at an affordable price, indicating the use of a value pricing strategy. Value pricing focuses on offering a product with high value at a reasonable price, rather than just competing on price alone. This strategy is commonly used by companies that offer superior quality or features compared to their competitors. Therefore, option E, which is value pricing is the best choice in this scenario.

Marco Wants to Buy a New Car That Is of Good