Consumers tend to use price as a surrogate indicator of quality if ________.
A) they have little information with which to make their purchase decision
B) they have confidence in their ability to make an educated product or service choice
C) they are familiar with the brand name
D) they have experience with the store in which the product was purchased
E) they have experience with the product or service

Question

Quizplus · Accepted Answer

When consumers have little information to make a purchase decision, they often use price as a surrogate indicator of quality as it seems logical that a higher-priced product or service would be of higher quality. This is known as the price-quality heuristic.

Consumers Tend to Use Price as a Surrogate Indicator of Quality