Which of the following is an example of a demographic factor that is significant to the pricing decisions of a new type of low-fat cereal for children?
A) How many boxes of the low-fat cereal will be consumed by a household in a month?
B) What price will indicate the quality of the cereal?
C) Are potential buyers of the cereal prestige oriented?
D) Will potential buyers be attracted to the cereal if its manufacturer uses odd pricing?

Question

Quizplus · Accepted Answer

Demographic factors that are particularly important for pricing decisions include expected consumption rates of potential buyers. Psychological factors related to pricing concern primarily how consumers will perceive various prices or price changes. Psychological factors include questions such as: (1) Will potential buyers use price as an indicator of product quality? (2) Will potential buyers be favorably attracted by odd pricing? (3) Are potential buyers prestige oriented and therefore willing to pay higher prices to fulfill this need?

Which of the Following Is an Example of a Demographic