Which of the following statements is true of high-priced brands?
a. Lower quality brands tend to attract more business than do similar promotions of higher priced and higher quality brands.
b. A bad experience with a lower priced product tends to increase the level of disappointment more as compared to higher price brands.
c. Higher prices increase expectation and set a reference point against which people can evaluate their consumption experiences.
d. Reliance on high prices as an indicator of quality occurs only for products in niche markets.
Answer: c.
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