25. A product's price can affect how customers perceive its quality. True False

This question is related to the perception of product quality based on its price. It is a well-known concept in marketing and consumer psychology that the price of a product can influence a customer's perception of its quality. This is known as the "price-quality relationship" or the "price-quality correlation." Customers often equate a higher price with higher quality, and vice versa. This perception is based on the assumption that it costs more to produce high-quality products, and therefore, they are more expensive. However, this is not always the case, as there are many factors that can influence the price of a product, including production costs, marketing strategies, and brand positioning. Despite these exceptions, the general perception remains that a higher price indicates higher quality. Therefore, the statement "A product's price can affect how customers perceive its quality" is true.