Consumers Tend to Use Price as a Surrogate Indicator of Quality

question 4

Multiple Choice

Consumers tend to use price as a surrogate indicator of quality if ________.

• A) they have little information with which to make their purchase decision
• B) they have confidence in their ability to make an educated product or service choice
• C) they are familiar with the brand name
• D) they have experience with the store in which the product was purchased
• E) they have experience with the product or service

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Definitions:

Discount Pricing

A strategy where products or services are sold at a reduced price to attract customers and increase sales volume.

Special Price Reductions

Discounts offered on goods or services beyond the usual pricing, often to promote sales or clear inventory.

Automakers

Companies involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Surge Pricing

A pricing strategy that increases the cost of goods or services in response to high demand.