A positive role of price exists when product price signals the desirability as well as the prestige associated with owning the product.

Question

Quizplus · Accepted Answer

Price can act as a signaling mechanism, indicating the perceived value and desirability of a product. In certain cases, a higher price may signal higher quality or prestige associated with owning the product, which can be seen as a positive role of price.

A Positive Role of Price Exists When Product Price Signals