Question

can prices be set too low?
○ yes, customers may feel quality is too low.
○ yes, customers may feel quality is too high.
○ no, the lower the price, the greater the products appeal.
○ no, the lower the price, the more willing the customer is to buy.
question 6
with what do many customers associate price?
○ discounts
○ quality
○ location
○ comfort

Explanation:

First Question (Can prices be set too low?):

To determine the answer, we analyze each option:

• Option 1: "Yes, customers may feel quality is too low." This is logical because consumers often associate low prices with lower quality. If a price is set too low, customers might perceive the product's quality as insufficient.
• Option 2: "Yes, customers may feel quality is too high." This is illogical as a low price would not lead to the perception of high quality.
• Option 3: "No, the lower the price, the greater the product’s appeal." While lower prices can increase appeal, there are cases where too - low prices raise quality concerns, so this is not always true.
• Option 4: "No, the lower the price, the more willing the customer is to buy." Similar to option 3, while lower prices can increase willingness to buy, the quality perception issue means prices can be set too low.

We analyze each option:

• Option 1: "Discounts" - While prices can be related to discounts, the more common and fundamental association for many customers is between price and quality.
• Option 2: "Quality" - It is a well - known consumer behavior concept that many customers associate price with quality. Higher prices are often seen as indicators of better quality and vice - versa.
• Option 3: "Location" - There is no strong general association between price and location in the sense of what the question is asking (unlike the quality - price association).
• Option 4: "Comfort" - Comfort is not a typical factor that customers associate with price in a general sense.

Answer:

A. Yes, customers may feel quality is too low.

Second Question (With what do many customers associate price?):