Which of the following best illustrates affordable pricing?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Affordable pricing refers to a strategy where prices are set to be accessible to a broad range of consumers, often with the goal of maximizing volume sales. By adopting this approach, businesses aim to attract a larger customer base, which can lead to increased sales volume and, consequently, greater overall revenue, even if the profit margin per item sold is lower.

When pricing is aimed at maximizing volume sales, it effectively illustrates affordable pricing because it prioritizes making products available to as many consumers as possible. This strategy typically involves competitive pricing that undercuts rivals or positions the product as cost-effective, appealing to price-sensitive customers.

In contrast, other choices involve different pricing strategies that do not align with the concept of affordable pricing. For example, high initial costs for quality assurance or setting prices to maintain brand prestige focus on other business objectives, such as quality perception or status rather than accessibility. Offering discounts during sales events may also create a temporary affordability but does not represent a consistent pricing strategy aimed at overall affordability.

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