A popular store that specializes in ready-to-assemble and affordable furniture is adding a high-end luxury leather sectional sofa to its product line. They are considering a price of $6379, which is over $3200 more than any other sectional sofa in their inventory. Why might this item and price be problematic for the company?

 
 
 
 
 
 

This price most likely won’t pass the “laughability” test, as customers may not believe a store of this type should be selling a sofa that is that much more expensive than its other products.

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