When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is a very expensive brand. This is an example of the _____ effect associated with the price-quality relationship

a. durability

b. allocative

c. prestige

d. hedonistic

ANSWER: d

This is an example of the hedonistic effect associated with the price-quality relationship. High purchase prices may create feelings of pleasure and excitement associated with consuming higher-priced products. This is the hedonistic effect.