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 As discussed in this chapter, customers interpret and respond to prices. In different ways, depending on the type of product, perceptions of product quality, and the customer’s ability to judge product quality independent of the price. Because customers lack the ability to judge product quality, they sometimes use the price of the product as an indicator of product quality. Thus, the price-quality relationship can influence the purchase of some products. For each of the following, indicate whether customers rely heavily, moderately, or hardly at all on the price to judge the quality of a product.

Airfare in coach

 Appendectomy

Baby food

Cell phone service

 Cosmetics

 Dog food

 Electricity

 Gasoline

 Haircut

 Hotel room

 Jewelry

 Tanning salon

Used Cars

 

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