A bakery has to set the price of its sourdough bread.Which of the following is a psychological factor relevant to the pricing decision of the baker?
A)How many loaves of bread will a potential buyer consume every month?
B)Are the orders coming from households or sandwich shops?
C)Will a low price indicate inferior quality to a potential buyer?
D)How many potential buyers for sourdough bread are out there?

Question

Quizplus · Accepted Answer

The psychological factor relevant to the pricing decision of the baker is whether a low price will indicate inferior quality to a potential buyer. This is because perception of quality is often linked to price, and a low price may lead to the perception of lower quality. The other options are not psychological factors, but rather relate to demand and market research.

A Bakery Has to Set the Price of Its Sourdough