Consumers Rely Less on Price to Judge the Quality of a Product

question 38

Multiple Choice

Consumers rely less on price to judge the quality of a product when they .

• A) are unable to research the product
• B) are unable to judge the quality of the product
• C) lack information about the product
• D) rely on cues from sellers to differentiate a high or low price
• E) have prior experience with the product

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Definitions:

Withdraw

The act of removing funds from an account or investment, or the process of backing out of an engagement or commitment.

Inherited

Received as an inheritance, passing on assets from a deceased person to their heirs or beneficiaries.

Ordinary Annuity

A series of equal payments made at regular intervals over a set period.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.