True or False: Keeping his maximum willingness to pay for an apartment in mind, Jake will not buy the apartment because it would be worth less to him than its market price of $300,000.

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Business

Moss

1 June, 02:24

True or False: Keeping his maximum willingness to pay for an apartment in mind, Jake will not buy the apartment because it would be worth less to him than its market price of $300,000.

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Noemi Booth · Answer 1

TRUE

Explanation:

True it is that: Keeping his maximum willingness to pay for an apartment in mind, Jake will not buy the apartment because it would be worth less to him than its market price of $300,000.

Generally consumers respond to value as a matter of fact consumers can pay more than the list price if they think it will give them higher value than the market price.

Consumers don't purchase products primarily for their functions, hence Jake will not pay for the house because of his maximum willingness to pay.

A customer buys a product for the perceived benefit he will gain from it. This perceived benefit, in addition to his opinion of the product, are what create customer perceived value.