Question

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as:____________.
a. an indicator of the variety.
b. an indicator of quality.
c. a measure of scarcity.
d. a reflection of status quo pricing. e. a measure of the income effect.

Answer 1

Answer:

b. an indicator of quality.

Explanation:

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as an indicator of quality.

Value-based pricing is a strategy of setting prices primarily based on a consumer's perceived value of a product or service.

Price is an Indicator of Value From a consumer's standpoint because it is often used to indicate value when it is compared with perceived benefits such as the quality .