PoolPak produces climate-control systems for large swimming pools. The company's customers are more concerned about service support for maintaining their systems than the initial price of the product. PoolPak specializes in and differentiates itself through both cutting-edge technologies used to build its high-value climate control systems as well as seamless quality service. PoolPak's prices are very high, but demand for its climate-control systems seems to be forever on the rise. This exemplifies ________.
A) target costing
B) a pure monopoly
C) cost-plus pricing
D) a nonprice position
E) break-even pricing

Question

Quizplus · Accepted Answer

PoolPak is differentiating itself based on non-price factors such as cutting-edge technology and quality service, and customers are more concerned about service support than the initial price. This suggests a nonprice position strategy, where the focus is on the unique value proposition of the product rather than competing on price.

PoolPak Produces Climate-Control Systems for Large Swimming Pools