Some Consumers Maintain a "Price-Quality Association," Meaning That If a Product

question 167

Multiple Choice

Some consumers maintain a "price-quality association," meaning that if a product has a high price, they assume the product must have high quality. This "price-quality association" is the basis for the use of:

• A) Odd-even pricing.
• B) Prestige pricing.
• C) Leader pricing.
• D) Reference pricing.
• E) Price lining.

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Definitions:

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.

Total Utility

The overall pleasure gained through consuming a certain volume of goods or services.

Scented Candles

Fragranced candles that release a pleasant aroma when lit, often used for decoration, lighting, or to create a calming atmosphere.

Total Utility

The overall satisfaction or pleasure received by a consumer from consuming a particular quantity of a good or service.