A company that produces a popular brand of pasta decides against increasing its product price. Instead, the management chooses to decrease the quantity of packed content from 100gms to 90gms. According to the management, any move to increase the product price might result in the brand losing a major chunk of its loyal consumers who relate to the brand as affordable. This is an attempt by the company to preserve the _____ of its consumers regarding its product.

Question

Quizplus · Accepted Answer

The company's decision to decrease the quantity of the packed content while keeping the price the same may affect the way consumers perceive the brand. By maintaining the price point, the company is likely trying to preserve the perception that its products are affordable.

A Company That Produces a Popular Brand of Pasta Decides