Discuss how consumers use the price-quality relationship to evaluate goods and explain how marketers can take advantage of this consumer response.
What will be an ideal response?
Consumers tend to rely on price as an indicator of product quality; that is, a higher price indicates higher quality in the form of better materials, more careful workmanship, or higher service levels. Conversely, lower price indicates lower quality as illustrated by the adage, "you get what you pay for."
Marketers can take advantage of the price-quality phenomenon by increasing the price of the product to enhance the image of their product. This is known as a prestige pricing strategy.
You might also like to view...
The term “performance based” in a contract means the ______.
A. payment is made through the use of vouchers B. grant recipient is not required to show measurable outcomes C. payment and renewal of the grant are contingent on meeting outcome goals D. grant recipient must demonstrate performance outcomes before receiving a grant
Find the noun that requires an apostrophe ('). Indicate the correct possessive form of the noun with the apostrophe in the correct place. Example Jims files were misplaced. Jim's You should listen carefully to a customers complaint and try to fix the problem
Weisbach Electronics is considering investing in India. Which of the following factors would make the company less likely to proceed with the investment?
A. The company would have the option to withdraw from the investment after 2 years if it turns out to be unprofitable. B. The investment would increase the odds of the company being able to subsequently make a successful entry into China. C. The investment would preclude the company from being able to make a profitable investment in China. D. Competitors are considering similar investments in India, and the firm can discourage them from trying by entering now. E. The new plant could be easily retrofitted to manufacture many of the firm's other products.
What is the purpose of using common size balance sheets and common size income statements?
What will be an ideal response?