Which of the following statements about pricing psychology is FALSE?
A) When consumers lack information or skill necessary to make quality judgements, price becomes a very important consideration.
B) When looking for a given product, many buyers carry around reference prices, which they have formed from noting current prices or remembering past experuiences.
C) When consumers can evaluate a product's quality, they use a combination of price and observed product features to make judgements about overall quality.
D) In the absence of tangible cues to evaluate quality, consumers often turn to price as a quality signal.
E) Even small differences in price can suggest product differences.

Question

Quizplus · Accepted Answer

In statement C, the assertion that consumers use a combination of price and observed product features to make judgments about overall quality is generally true, not false. Consumers often rely on both price and observable features as cues to assess quality, especially when they have the ability to evaluate the product's attributes directly. This contradicts the instruction to identify a false statement about pricing psychology.

Which of the Following Statements About Pricing Psychology Is FALSE