Liz and Sarah watched the prices of all the ingredients in their line of specialty sauces go up and up.Now,transportation costs were going through the roof.Liz suggested they could raise prices to cover these expenses because customers would understand.Which of these is the most important factor Liz and Sarah should consider before raising prices?
A) The costs might go back down again.
B) They will have to adjust their promotional literature.
C) Customers do not care about the company's costs; they care about value.
D) Rental costs for their production facility might go up next.
E) Consumers do not think about the cost of additional items; they are concerned mostly with the total cost for a visit to a store.

Question

Quizplus · Accepted Answer

Liz and Sarah need to consider the customer's perception of the value of their product. Even if they experience increased costs, customers may not be willing to pay more for the same product unless they see a corresponding increase in value. Regardless of the other factors, Liz and Sarah need to prioritize their customers' perception of value.

Liz and Sarah Watched the Prices of All the Ingredients