The correct answer is:
Customers may feel that the low price signals less quality.
Pricing a product too far below competing products can lead customers to perceive the product as being of lower quality.
What risk does a producer take when pricing a product too far below competing products?
Multiple choice question.
Customers may buy the cheaper product without considering its quality.
Customers may feel that the low price signals more quality.
Customers may feel that the low price signals less quality.
Customers may demand further price reductions unless the product improves its
1 answer