When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is a very expensive brand. This is an example of the _____ effect associated with the price-quality relationship
a. durability
b. allocative
c. prestige
d. hedonistic
ANSWER: d
This is an example of the hedonistic effect associated with the price-quality relationship. High purchase prices may create feelings of pleasure and excitement associated with consuming higher-priced products. This is the hedonistic effect.
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