Question

To gain market share, when hyundai first entered the u.s. car market it did so with a comparatively low pricing strategy. one of the negative side effects of making this pricing decision is

a. difficulty raising the prices later.

b. higher developmental costs.

c. poor survival chances.

d. a negative impact on consumers' perceptions of quality.

e. a high return on investment level affecting tax balances owed.

Answer 1

One of the negative effects of making this pricing decision is that it will brings about a negative impact on consumers' perception of quality. Generally, consumers believe that a lower price for a particular commodity means a lower quality, people tend to associate higher prices with high qualities.