When Consumers Cannot Judge the Quality of a Product Because

question 39

True/False

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher- priced product as having higher quality.

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Definitions:

Lost Profits

Lost profits refer to the income that a business could have earned but was unable to due to disruptions, such as competition or natural disasters.

Expected Success

The anticipation of achieving a favorable outcome in any given venture or activity, often quantified based on objective criteria or previous performances.

Representativeness

A cognitive bias in decision-making where an individual assesses the likelihood of an event by comparing it to an existing prototype in their mind.

Control Group

In experimental research, a group of subjects that does not receive the treatment or intervention being tested, used as a benchmark.