When consumers cannot judge quality because they lack the information or skill,price becomes ________.
A) less important
B) insignificant
C) an important quality signal
D) the only driver of the purchase
E) negotiable

Question

Quizplus · Accepted Answer

When consumers are unable to judge the quality of a product or service, they often rely on price as an indicator of its quality. This makes price an important quality signal, as it communicates information to consumers about the quality of the product. The higher the price, the higher the perceived quality, and vice versa. Therefore, in situations where consumers lack information or skill to judge quality, price becomes an important factor in their purchase decision.

When Consumers Cannot Judge Quality Because They Lack the Information