The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one. Which of the following, if true, would most strengthen the conclusion drawn above? (A) It is possible to increase both the quality and the price of a product without changing its competitive position. (B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands. (C) Competing products often try to appeal to different segments of the population of consumers. (D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.(E)
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product. I chose A. Can someone explain why A is not correct? Thanks |