Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the price leadership strategy.

Question

Quizplus · Accepted Answer

The decision to charge a high price due to lack of competition and perceived quality aligns with a price skimming strategy, not price leadership. Price leadership involves setting prices based on competitors' pricing, which is not applicable here as there is no direct competition.

Gourmet Pets Feels Its Target Market Is More Concerned with Perceived