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# Consumers appreciate free products more than they appreciate discounte

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Manager
Joined: 16 May 2016
Posts: 202
Location: India
Concentration: Marketing, Healthcare
GPA: 3.5
WE: Analyst (Consulting)
Consumers appreciate free products more than they appreciate discounte  [#permalink]

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22 Nov 2018, 08:55
00:00

Difficulty:

65% (hard)

Question Stats:

63% (02:01) correct 37% (02:21) wrong based on 121 sessions

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Consumers appreciate free products more than they appreciate discounted products when such products are paired with full priced high-end products. The reason behind the same could be the monetary value they attach to various goods. Research shows that consumers tend to believe that the monetary value of the free product is probably consistent with the value of the high end purchased product with which it is being offered for free. However, when a discounted product is paired with a high-end product, consumers attach less monetary value to it than they would have had the same product been offered for free.

Which of the following best supports the conclusion as stated above?

A.Before making a purchase decision, consumers thoroughly check the price of the products with which free or discounted products are paired
B.It is highly unlikely that consumers would ever actually buy most of the products offered for free with the high-end purchased product
C.Consumers are aware that the price of the product offered for free or on discount never exactly matches the cost of the high-end product to the retailer
D.In an experiment, the customers of a gold jewelry shop who were given a free bottle of wine with a certain purchase expressed more satisfaction than the customers who were offered the same wine for one dollar when they made the same purchase
E.Customers in general are aware of the actual price of the products even when these products are offered for free or on discount

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Joined: 22 Sep 2018
Posts: 19
Re: Consumers appreciate free products more than they appreciate discounte  [#permalink]

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26 Nov 2018, 19:44
1
Cbirole wrote:
Consumers appreciate free products more than they appreciate discounted products when such products are paired with full priced high-end products. The reason behind the same could be the monetary value they attach to various goods. Research shows that consumers tend to believe that the monetary value of the free product is probably consistent with the value of the high end purchased product with which it is being offered for free. However, when a discounted product is paired with a high-end product, consumers attach less monetary value to it than they would have had the same product been offered for free.

Which of the following best supports the conclusion as stated above?

A.Before making a purchase decision, consumers thoroughly check the price of the products with which free or discounted products are paired
B.It is highly unlikely that consumers would ever actually buy most of the products offered for free with the high-end purchased product
C.Consumers are aware that the price of the product offered for free or on discount never exactly matches the cost of the high-end product to the retailer
D.In an experiment, the customers of a gold jewelry shop who were given a free bottle of wine with a certain purchase expressed more satisfaction than the customers who were offered the same wine for one dollar when they made the same purchase
E.Customers in general are aware of the actual price of the products even when these products are offered for free or on discount

How does D explain the consumer behavior? It just serves as an example of what the author states in the argument above. Could someone please help me understand the point of difference? Thank you.
Re: Consumers appreciate free products more than they appreciate discounte   [#permalink] 26 Nov 2018, 19:44
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