A Decision to Position the Product on High-Performance Quality Will

question 51

Multiple Choice

A decision to position the product on high-performance quality will mean that the ________.

• A) seller must charge a higher price to cover higher costs
• B) seller must charge a lower price to attract more customers
• C) producer must step down production
• D) marketer must boost derived demand in the market
• E) break-even volume will be fairly low

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Definitions:

Disposable Income

The capital households have left for spending and saving after paying income taxes.

Disposable Income

The financial capacity of households to spend and save, net of income taxes.

Savings

The part of earnings not used for purchasing goods or services, typically saved for investing or future needs.

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.