Peter purchased an inexpensive necklace from a department store to give to his sweetheart, Julie, on Valentine's Day. He didn't want her to know that he did not spend very much for the jewelry, so he put it in a box he had from an upscale jewelry store that sells only expensive items. When Julie unwrapped her gift, she was excited to see that it came from this store and absolutely loved the necklace Peter gave her. Which key concept of marketing does this illustrate?

Question

Quizplus · Accepted Answer

This scenario illustrates the concept of branding, where the perceived value of a product or service is influenced by the brand image associated with it. Peter used the box from an upscale jewelry store to create a perception of higher value for the inexpensive necklace he bought from a department store. Julie was excited to receive a gift from the upscale jewelry store, which influenced her perception of the necklace's value.

Peter Purchased an Inexpensive Necklace from a Department Store to Give