Question

29. Price is most likely to be reflection of _____

quality

image

brand equity

the perceived value of a product

intensity of competition

* I think quality, but I am lost

Answer 1

Quality

Yes, it is totally correct that the price is the reflection of quality.

Let’s take the help from an example of suvey:

A survey conducted in the university in which the students were placed in an MRI machine and given sips of red wine- including the same presented twice, with the two different price tags, one for $10 and another for $100(fictional price). All the students said they like expensive wine better. The preference that is mirrored by the increased activity in prefrontal cortexes.

When people know that the wine is very expensive the pleasure is enhanced in their brain where such sensations are processed.

This clearly states that the people clearly think that if the product is expensive that means it has those quality parameters that is why it costly hence the price is the most likely reflection of quality.