Two bags of chips sit side-by-side in a grocery store: Ruffles (a brand name)sells for $3.00,while Crunchy Chips (not a brand name)sells for $1.50.In a typical day the store sells some of each type of chips,which suggests that

Question

Quizplus · Accepted Answer

The fact that the store sells both Ruffles and Crunchy Chips suggests that there are consumers who are willing to pay $3.00 for Ruffles, indicating that they perceive Ruffles as a higher quality product compared to Crunchy Chips. Therefore, choice B is the correct answer. Choice A is incorrect because consumers' preferences do not always depend solely on price. Choice C is also incorrect because maintaining product quality is vital to sustaining customer loyalty and maintaining the brand's reputation, regardless of the price.

Two Bags of Chips Sit Side-By-Side in a Grocery Store