New entrepreneurs often feel they should sell their product or service at the lowest price they can afford. However, ________.
A) Sometimes consumers think low price indicates low quality
B) Often consumers are willing to pay higher prices than the entrepreneur will charge
C) Purchasers of luxury goods may want to pay a higher price rather than a lower price
D) All of the above.

Question

Quizplus · Accepted Answer

All three statements are true. Sometimes consumers may associate low prices with low quality, and may be willing to pay a higher price for perceived value. Additionally, for luxury goods, a higher price may be preferred to maintain the exclusivity and status associated with the product. Therefore, entrepreneurs should not always assume that selling at the lowest price is the best strategy.

New Entrepreneurs Often Feel They Should Sell Their Product or Service