Managers are motivated to hold prices down when they believe that consumers have:
A) high levels of price knowledge.
B) low levels of price knowledge.
C) high levels of usage knowledge.
D) low levels of usage knowledge.
E) None of the above.

Question

Quizplus · Accepted Answer

Managers are motivated to keep prices low when they believe consumers are well-informed about prices, as this makes consumers more price-sensitive and likely to compare prices across different sellers.

Managers Are Motivated to Hold Prices Down When They Believe