Vince, Inc. has developed and patented a new laser disc
reading device that will be marketed internationally. Which of
the following factors should Vince consider in pricing the device?
I. Quality of the new device.
II. Life of the new device.
III. Customers’ relative preference for quality compared to
price.

(d) To determine the price at which expected product
sales will yield the greatest profits, many factors such as customer
preferences, competitors’ reactions, cost structures, etc. must be
considered. A customer’s perception of the quality and durability (life) of a product affects how much s/he is willing to pay for that
product. However, in some cases a customer may prefer to pay
less money and receive a product of lesser quality. Therefore,
Vince should consider the quality and life of the new device as
well as customers’ relative preference for quality compared to
price.