Specialty shops can charge and get customers to pay higher prices for identical goods than they would pay in "big box" stores. Assuming that these differences are driven by store appearance rather than differences in services provided, which of the following best explains this phenomenon?

Question

Quizplus · Accepted Answer

Framing effects explain this phenomenon because the way a product is presented (e.g., in a specialty shop versus a big box store) can influence consumers' perceptions and willingness to pay. The store's appearance can frame the product in a more exclusive or high-quality light, leading customers to value it more and be willing to pay higher prices.

Specialty Shops Can Charge and Get Customers to Pay Higher