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In pricing decision-making, what role does consumer psychology play?
  • a)
    It determines the cost structure of a product.
  • b)
    It influences the government's pricing policies.
  • c)
    It affects the sensitivity of demand to price changes.
  • d)
    It determines the market share growth objective.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In pricing decision-making, what role does consumer psychology play?a)...
Consumer psychology plays a role in pricing decision-making by affecting the sensitivity of demand to price changes. The behavior of consumers, their perception of value, and their willingness to pay are influenced by factors like product quality, brand image, and customer service, which impact their response to pricing changes.
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In pricing decision-making, what role does consumer psychology play?a)It determines the cost structure of a product.b)It influences the government's pricing policies.c)It affects the sensitivity of demand to price changes.d)It determines the market share growth objective.Correct answer is option 'C'. Can you explain this answer?
Question Description
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