A consumer is about to buy a product for the first time.He has not had any experience buying or using this product before.In such a case, it is likely that he interprets price as a measure of:
A)product availability.
B)producer profitability.
C)customer acceptance of the product.
D)the time required to purchase the product.
E)product quality.

Question

Quizplus · Accepted Answer

When a consumer is buying a product for the first time without prior experience, he/she typically interprets price as a measure of product quality. The consumer perceives that the higher the price, the better the quality of the product. This perception is commonly referred to as price-quality heuristic, and it is based on the assumption that price is a reliable indicator of quality. Therefore, the consumer is more likely to associate a high price with a high quality product, and a low price with a low-quality product.

A Consumer Is About to Buy a Product for the First