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. This is because consumers with high levels of price knowledge are more likely to compare prices across different sellers and choose the one offering the best value, prompting managers to maintain competitive pricing.

Managers Are Motivated to Hold Prices Down When They Believe