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

Question

Quizplus · Accepted Answer

Consumers tend to believe that higher priced goods are manufactured with better quality ingredients, which is known as the price-quality heuristic. This perception is partly based on the assumption that a higher price will always reflect a higher level of quality. However, this is not always accurate, as there are many factors that can influence the price of a product.

Which of the Following Statements Is True of Price-Quality Relationships