Question : Statement 1: Price is a major determinant of a product's perceived quality and value.
Statement 2: Price has no impact on consumer perceptions and purchase decisions.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is false.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. Price can significantly influence how consumers perceive the quality and value of a product. Higher prices often suggest higher quality or exclusivity, while lower prices may be associated with lower quality or affordability.
Statement 2 is false. Price is a fundamental factor that impacts consumer perceptions and purchase decisions. Consumers often consider the price of a product in relation to its perceived value and make purchase decisions accordingly.
