Consumers may assume that a low price indicates low quality.

Name: Consumers may assume that a low price indicates low quality.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is a common consumer perception known as the "price-quality heuristic." However, this is not always true as there are many factors that can affect pricing, such as economies of scale, production efficiencies, and competition. Therefore, it is important to evaluate products based on their quality and value, rather than just their price.

Consumers May Assume That a Low Price Indicates Low Quality