Hedonic price analysis:
A)Is hard to use because of the sophistication of the tool
B)Graphically represents customers' perceptions of rival products or services
C)Identifies the likely market price for individual product attributes implied by the price for the total product
D)Identifies the underlying attributes of a product or service

Question

Quizplus · Accepted Answer

Hedonic price analysis is a statistical technique used to identify the underlying attributes of a product or service that contribute to its overall value. It involves analyzing the prices of different products or services and their associated attributes to determine which attributes have a significant impact on consumers' willingness to pay. This analysis can help marketers identify the likely market price for individual product attributes and make informed pricing decisions. While hedonic price analysis may require some level of statistical sophistication, it is a valuable tool for understanding customers' perceptions and preferences.

Hedonic Price Analysis