Studies suggest that price is more likely to be used as a cue to quality under which of the following conditions?
A)when price is the primary differential information available
B)when alternatives are heterogeneous
C)prior to purchase
D)when comparative price differences are relatively large
E)all of these

Question

Quizplus · Accepted Answer

All of the given conditions are likely to increase the use of price as a cue to quality. When price is the primary differential information available, consumers tend to rely on it more heavily. When alternatives are heterogeneous, it may be difficult for consumers to compare options based on other factors, so they may use price as a proxy for quality. Prior to purchase, consumers may have limited information, so price may be a more accessible cue. Finally, when comparative price differences are relatively large, consumers may assume that the higher-priced option is of higher quality.

Studies Suggest That Price Is More Likely to Be Used