People Often Equate Quality with Price

question 72

Multiple Choice

People often equate quality with price.This belief has lead to which of the following pricing strategies?

• A) Prestige pricing
• B) Odd pricing
• C) Reference pricing
• D) Price lining

---

Definitions:

Creates Value

Generally refers to actions or processes that increase the worth of a product, service, or company to stakeholders.

Owners

Individuals or entities that possess legal title or right to a property or asset.

Payback Rule

A capital budgeting method that determines the length of time required to recoup the initial investment from the cash inflows produced by the investment.

Time Value

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.