Higher-Priced Products Exhibit Less Relative Price Dispersion Because

question 40

Multiple Choice

Higher-priced products exhibit less relative price dispersion because:

• A)consumers do more research on goods they really like.
• B)the high price alone signals that the product is of good quality.
• C)consumers do more research on more expensive goods.
• D)producers invest heavily in the advertisement and promotion of such products.

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Definitions:

Experiential Hierarchy

The organization of experiences and learnings in a manner where they are structured from the most basic to the most complex.

Low-Involvement Hierarchy

A consumer decision-making process for products or services that are perceived as low risk and have little emotional connection, often involving limited information search and simple evaluation processes.

Behavioural Learning

The process of acquiring new behaviors and knowledge through the interaction with the environment, often involving stimuli and responses.

Emotional Contagion

The phenomenon where emotions can be transferred from one person to another, influencing the moods and behaviors of others.