When Yolanda went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it. After a few days, she came across a store-brand jacket that looked similar but was one-fifth the price of the one she had bought. She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What does this suggest about consumer psychology?

Question

Quizplus · Accepted Answer

The Answer is Yolanda was using the price as an indicator of quality. Image pricing of the designer-label jacket was therefore effective. In general, this kind of pricing is especially effective with ego-sensitive products such as perfumes, expensive cars, and designer clothing.

When Yolanda Went Shopping, She Paid a Lot to Buy