By increasing the perceived value of a firm's products or services, a firm will be able to
A) charge a lower price than it would otherwise be able to do.
B) charge a higher price than it would otherwise be able to do.
C) sell its products at lower prices than firms pursuing a cost-leadership strategy.
D) gain significantly more market share than firms pursuing a cost-leadership strategy.

Question

Quizplus · Accepted Answer

By increasing the perceived value of a firm's products or services, the firm can charge a higher price than it would otherwise be able to do. This is because customers are willing to pay more for a product or service that they perceive as having higher value. Increasing perceived value can also create a competitive advantage for the firm, as customers will be more likely to choose the firm's products or services over those of competitors.

By Increasing the Perceived Value of a Firm's Products or Services