When consumers are unable to judge the quality of a product through examination or prior experience,they often assume that the higher-priced product is the higher-quality product.This is an example of the________.
A)assimilation effect
B)clouding effect
C)loss leader pricing effect
D)price-quality inference
E)contrast effect

Question

Quizplus · Accepted Answer

This phenomenon is known as the price-quality inference, where consumers assume that higher-priced products are of higher quality, particularly when they cannot assess quality based on prior experience or examination. It is a well-established pricing strategy used by marketers to influence consumer's perception of a product's quality.

When Consumers Are Unable to Judge the Quality of a Product