Consumer perceptions of the product's value set the for prices.
A)floor
B)ceiling
C)image
D)demand curve
E)variable cost

Question

Quizplus · Accepted Answer

Consumer perceptions of the product's value set the ceiling for prices, meaning that businesses cannot realistically charge more than what consumers perceive the product to be worth. The floor refers to the minimum price that a business can charge based on its variable costs, while image refers to the overall perception of the brand or company. The demand curve is a graphical representation of the relationship between price and quantity demanded. Variable cost refers to the cost incurred by a business to produce one unit of a product or service.

Consumer Perceptions of the Product's Value Set the for Prices