When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher- priced product as having higher quality.

Question

Quizplus · Accepted Answer

This is known as the "price-quality relationship" and it is a common phenomenon in the market. Consumers often use price as a cue for quality when they have limited knowledge or experience with a product. Companies may also take advantage of this by pricing their products higher to give the impression of higher quality.

When Consumers Cannot Judge the Quality of a Product Because