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A watch manufacturer uses price-skimming strategies and provides a lifetime warranty on their products - HSC - SSCE Business Studies - Question 4 - 2022 - Paper 1
Question 4
A watch manufacturer uses price-skimming strategies and provides a lifetime warranty on their products. What would most likely have influenced the implementation of ... show full transcript
Worked Solution & Example Answer:A watch manufacturer uses price-skimming strategies and provides a lifetime warranty on their products - HSC - SSCE Business Studies - Question 4 - 2022 - Paper 1
Step 1
Quality expectations
Answer
The implementation of price-skimming strategies in the context of a watch manufacturer is heavily influenced by quality expectations. Consumers generally associate higher prices with higher quality and reliability, particularly for luxury items like watches that promise longevity through a lifetime warranty. This expectation forms a critical component of consumer trust and market positioning.