In value-based pricing, a product with high quality and low price is perceived as high value. This is because the product offers more benefits or superior features compared to its cost, making it attractive to customers. This can lead to increased sales and customer loyalty. However, it's important to ensure that the low price doesn't lead to perceptions of low quality. Also, the company must ensure that the price covers costs and generates a profit, otherwise, this strategy could lead to financial losses.
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