Question : Assertion: Price influences customer perception of a product's quality and value.
Reason: Price is solely determined by the cost of production and has no connection to customer preferences.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Price does indeed influence customer perception of a product's quality and value. Customers often associate a higher price with higher quality or value, while a lower price may be perceived as lower quality or value. Price is one of the important factors that customers consider when evaluating a product's worth and quality.
The reason provided is false. Price is not solely determined by the cost of production. It is influenced by various factors, including production costs, market demand, competition, brand perception, and customer preferences. Customer preferences play a significant role in determining the price at which a product can be sold profitably in the market. Therefore, the reason is the correct explanation for the assertion.
Question : Assertion: Factors affecting price include costs, competition, and customer perception.
Reason: Price is determined solely by the seller's objectives and is independent of external factors.
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