Which of the following is true of price-quality relationships?
A)Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods.
B)Consumers believe that higher priced goods are manufactured with better quality of ingredients.
C)Consumers lack information about the quality of lowerpriced goods due to poor advertising.
D)Consumer demands for higherpriced goods remain unchanged even if their quality declines.

Question

Which of the following is true of price-quality relationships?
A)​Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods.
B)Consumers believe that higher priced goods are manufactured with better quality of ingredients.
C)Consumers lack information about the quality of lowerpriced goods due to poor advertising.
D)​Consumer demands for higherpriced goods remain unchanged even if their quality declines.

Quizplus · Accepted Answer

Consumers tend to associate higher prices with higher quality. This is referred to as the price-quality relationship. Studies have shown that consumers are willing to pay more for products that they perceive to be of higher quality. However, this does not necessarily mean that higher prices always indicate higher quality.

Which of the Following Is True of Price-Quality Relationships