Jenna wants her firm's gourmet teas to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that

A) rarely is the lowest-price offering the dominant brand in a market.
B) prestige products need to be competitively priced.
C) companies can gain market share by offering low-quality products at a high price.
D) total value equals total cost minus variable costs leading to price escalation.
E) price wars are the way to become the dominant brand.

Question

Ariana Irizarry · Accepted Answer

Final Answer : A, Explanation :  Rarely is the lowest-price offering the dominant brand in a market. Pricing strategy should focus on finding the optimal balance between value and price while differentiating the product from competitors. If the product is priced too low, it could be perceived as low quality or lacking in features, whereas if the product is priced too high, it could turn off potential buyers. Market research and analysis can help determine the right price point for gaining market share.

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