According to the price-quality association,
A) consumers have price floors but not price ceilings.
B) subjective prices do not influence purchase behavior.
C) consumers may believe that high prices represent high quality and that low prices represent low quality.
D) using loss leaders will increase store traffic and sales.

Question

Quizplus · Accepted Answer

The price-quality association refers to the perception that higher-priced goods are of higher quality and lower-priced goods are of lower quality. This is a common heuristic used by consumers when they lack information about a product.

According to the Price-Quality Association