Which of the Following Is Not a Likely Consequence of Improved

question 54

Multiple Choice

Which of the following is not a likely consequence of improved product quality?

• A) Increased sales returns.
• B) Decreased warranty repair costs.
• C) Reduced total manufacturing costs.
• D) Increased product selling prices.
• E) Reductions in rework costs.

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Definitions:

Prestige Pricing

Psychological pricing strategy used with goods whose quality is difficult to determine by inspection or for products about which consumers have little solid information.

Price Skimming

Setting the price of a new product higher than expected to recover development costs.

Penetration Pricing

Setting the price of a new product lower than expected to gain fast market share.

Development Costs

Development costs are expenses associated with the creation and design of new products or services, including research and development.