Firms that sell highly customized items such as motorcycles charge higher mark-ups than firms selling similar,but homogeneous products.An explanation for their market power is the
A) bandwagon effect.
B) greater value effect.
C) snob effect.
D) behavioral effect.

Question

Quizplus · Accepted Answer

The snob effect suggests that some consumers will pay a higher price for a product because it is seen as exclusive or unique, which is applicable to highly customized items such as motorcycles.

Firms That Sell Highly Customized Items Such as Motorcycles Charge