Which of the following statements about the assimilation contrast theory are correct?
a) If a price is outside of a certain range, the product will be contrasted, i.e. it will not be bought.
b) Internal reference prices are stable over time and generally don't change.
c) If a price stimulus is within certain ranges, the good or service is bought and the reference price adjusted where necessary.
d) When offering a similar good or service compared to competitors, companies can gain competitive advantages with a lower price.
a) If a price is outside of a certain range, the product will be contrasted, i.e. it will not be bought.
Answer: c) If a price stimulus is within certain ranges, the good or service is bought and the reference price adjusted where necessary.
d) When offering a similar good or service compared to competitors, companies can gain competitive advantages with a lower price.