If an individual is considering purchasing a Toyota Camry or a Ferrari and decides that it is worth paying the extra money for the prestige that is associated with the Ferrari,the additional money the customer is willing to pay for the prestige is know as a(n)
A) altruistic price.
B) hedonic price.
C) fair market value.
D) margin price.

Question

Quizplus · Accepted Answer

The additional money the customer is willing to pay for the prestige associated with the Ferrari is called a hedonic price. This refers to the extra amount people are willing to pay for a product based on its perceived aesthetic, emotional, or psychological value, rather than its functional value.

If an Individual Is Considering Purchasing a Toyota Camry or a Ferrari