How Can a Marketer Use Product Quality as a Pricing

question 112

Essay

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

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Definitions:

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may decrease.

Number of Workers

The total count of individuals engaged in the labor force of an organization, sector, or economy at any given time.

Units of Output

The quantity of product or service produced by a company, industry, or economic sector.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.