Question

When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line.

1) nonprice competition
2) value differences
3) quantity levels
4) images
5) strategies

Answer 1

When using price steps, the seller must establish perceived value differences to support the price differences among the products in the line. Differentiated products can be distinct through physical aspects, locations, intangible aspects, and perceptions. Intangible aspects like guarantees, reputation, and advertising can shape consumer preferences and differentiate products.

Step-by-step explanation:

When using price steps, the seller must establish perceived value differences that support the price differences among the products in the line. Differentiated products can be made distinct through physical aspects, locations, intangible aspects, and perceptions. For example, intangible aspects such as guarantees, reputation, and advertising can shape consumer preferences and differentiate products in the minds of buyers.