Caterpillar Corporation charges 20 percent to 30 percent more than competitors for its heavy construction equipment based on superior product and service quality. This is an example of.

Product Quality Leadership

Explanation:

Product quality leadership refers to the concept whereby a company strives to provide superior quality of goods and services than it's competitors, thereby charging a higher price than the competitors.

For example, Bose providing music systems with rich superior audio quality and good after sales services, charges lot more than it's competitors such as Sennheiser or Sony.

In the given case, Caterpillar charges 20 to 30 percent more for it's heavy construction equipment than competitors owing to superior products and better service quality. This represents product quality leadership.

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