When a consumer buys a $100 bottle of perfume containing $10.00 worth of materials, the gift giver is communicating their high regard to the receiver and this represents the concept of ________ in pricing.
A) reference prices
B) maximum current profit
C) price leadership
D) price cues
E) price-quality relationship

Question

Quizplus · Accepted Answer

The price-quality relationship is the concept that consumers associate higher prices with higher quality products. In this scenario, the gift giver is willing to pay a premium price for the perfume, indicating their belief in its high quality, which communicates their high regard for the receiver.

When a Consumer Buys a $100 Bottle of Perfume Containing