Question : Statement 1: Price plays a major role in shaping consumer perceptions of product quality.
Statement 2: Price has no impact on consumer perceptions and buying 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 often influences how consumers perceive the quality of a product. Higher prices may be associated with higher quality, while lower prices might be associated with lower quality.
Statement 2 is false. Price is a fundamental factor that significantly influences consumer perceptions and buying decisions. Consumers often consider the price of a product in relation to its perceived value and make purchase decisions accordingly.
