When Yolanda went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it. After a few days, she came across a store-brand jacket that looked similar but was one-fifth the price of the one she had bought
She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What does this suggest about consumer psychology?
Yolanda was using the price as an indicator of quality. Image pricing of the designer-label jacket was therefore effective. In general, this kind of pricing is especially effective with ego-sensitive products such as perfumes, expensive cars, and designer clothing.
You might also like to view...
360-degree feedback activities are typically part of:
a. coaching relationships b. feedback intensive programs c. developmental experiences d. self-awareness programs
Interpretations of the rules of conduct
A) are enforceable. B) are finalized after being approved by the FASB. C) are issued as exposure drafts to the profession and others for comments. D) do not apply to members in business.