When a consumer buys a $100 bottle of perfume containing $10 worth of materials,the gift giver is communicating their high regard to the receiver,and this represents the concept of ________ in pricing.
A) maximum current profit
B) price-quality relationship
C) reference prices
D) price cues
E) price leadership

Question

Quizplus · Accepted Answer

The concept of price-quality relationship refers to how the price of a product may communicate its perceived quality to consumers. In this example, the high price of the perfume may lead the receiver to believe that it is of higher quality, thus enhancing their regard for the gift giver.

When a Consumer Buys a $100 Bottle of Perfume Containing