Identify and discuss the various ways in which a company can add value to a product and thereby can charge a premium priceQuestionIdentify and discuss the various ways in which a company can add value to a product and thereby can charge a premium price?Answer & ExplanationBetter quality and perform...
Identify and discuss the various ways in which a company can add value to a
product and thereby can charge a premium price?
Answer & Explanation
Better quality and performance are two main ways businesses increase the
worth of their goods and demand a higher price. High-end products are
qualified for the market by companies using top-notch materials, expert
craftsmanship, or cutting-edge technology. Apple has shown to be the ideal
example, consistently producing cutting-edge features and creative product
designs that are sure to turn heads among consumers. Adding unique
functionality to address unmet demands or alleviate customer pain points gives
a company a competitive advantage in the market by offering a unique value
proposition.
, Building a solid reputation and brand image are further variables. Customers are
more likely to choose brands with a reputation for grandeur or dependability,
like Nike and Rolex, even if they cost more than average. This involves creating
a perception that is shaped by consistent quality, customer satisfaction, and
marketing. Furthermore, excellent customer service—that is, tailored assistance,
prompt action, and first-rate warranties—creates ease and trust in customers'
minds and helps them justify a product at this price.
Additionally, it lends a product an aura of exclusivity or restricted accessibility,
which raises its perceived worth. Luxury fashion brands that create limited
edition merchandise or create exclusive member-only initiatives frequently
engage in this. This kind of scarcity would increase demand and strengthen the
belief among customers that the product is well worth its higher price. Give
consumers the opportunity to personalize or customize your products by letting
them make them fit their own tastes. The buyer perceives this personal touch as
adding value to the goods, making it well worth paying a premium for.
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