Question

Alicia is interested in purchasing a set of ear buds to use with her laptop and smartphone. She visits best buy and notices that the prices vary from $10 to several hundred dollars. Alicia prefers wireless ear buds and compares the skullcandy model that costs $90 to a similar pair from beats by dre that cost $119. She decides to purchase the beats brand because she believes it’s a higher quality set. In this case, alicia has been influenced by the _______ effect of price.

Answer 1

She decides to purchase the beats brand because she believes it’s a higher quality set. In this case, alicia has been influenced by the Informative effect of price.

Information effect of price.

Consumers tend to use the information about the price of a product to ascertain its Quality. The is basically because the perception of quality  is usually indicated by price.

Here, Alicia buying the beats brand even thogh it costs higher than the skullcandy model  shows that she is using the information effect of price making her to perceive the beats brand as having higher quality.

Learn more on Information effect of price: brainly.com/question/7930369