Question

Why do some frozen pizzas cost more than others, when brands that offer similar quality are only a few feet away in the frozen food aisle? To answer this question, draw the graph(s) showing what price and output look like for DiGiorno and generic pizza? What is the markup for DiGiorno? Does DiGiorno or a generic brand have a strong incentive to maintain strict quality control in the production process? Why?

Answer 1

=>If the frozen pizza cost more than others why because of the production cost or the additional cost incurred on that pizza is more than other pizzas.

=> promotion  the pizzas very extensively like : DiGiorno pizza. The Consumers are attracted by  the brand  advertisement and believe their product to be of higher quality.

=>The other generic pizza and thus are even willing to pay more for that pizza. Price of DiGiorno pizza is more than Generic Pizza but still it's sales is also more than Generic pizzas.

=>Yes , DiGiorno having  and maintain best  quality control in the production.

=>If process have to maintain the belive of the coustmers which have been build through a number of promotional processes. Otherwise consumers would not willing to buy their pizzas again.