The substitution effect suggests that when consumers judge product quality by price, they will substitute high-priced products for low-priced products.

Name: The substitution effect suggests that when consumers judge product quality by price, they will substitute high-priced products for low-priced products.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The substitution effect refers to consumers substituting a product with another due to a change in relative price, not necessarily judging product quality by price.

The Substitution Effect Suggests That When Consumers Judge Product Quality