Which of the following statements is true about customers' interpretation and response to price?
A) An internal reference price is a comparison price provided by others such as friends and relatives.
B) An external reference price is a price developed in the buyer's mind through experience with the product.
C) Prestige-sensitive customers are concerned about both the price and quality aspects of a product.
D) At times, customers interpret a higher price as higher product quality.
E) Customers do not consider the resources required to maintain a product after purchase.

Question

Which of the following statements is true about customers' interpretation and response to price? 
A) An internal reference price is a comparison price provided by others such as friends and relatives. 
B) An external reference price is a price developed in the buyer's mind through experience with the product. 
C) Prestige-sensitive customers are concerned about both the price and quality aspects of a product. 
D) At times, customers interpret a higher price as higher product quality. 
E) Customers do not consider the resources required to maintain a product after purchase.

Quizplus · Accepted Answer

Customers may interpret a higher price as higher product quality, especially in the case of prestige products or luxury goods. This is known as the price-quality relationship, where customers may use price as an indicator of quality. However, it is important to note that this does not apply to all products and all customers.

Which of the Following Statements Is True About Customers' Interpretation