You work for a company that makes luxury watches. The prices of watches in your product line could best be described as ranging from moderately to super expensive. Your team is considering whether or not to add a lower entry price watch to the product line. How might this decision impact pricing and sales of the product line?


Luxury brands often have a high price for the least expensive item in a product line because they want to build a certain image and exclude buyers seeking a lower price. The company needs to consider if the lower entry price will ultimately hurt the overall product line and brand image.

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