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Consider two gas stations. One is located at a major intersection used by people

ID: 1117659 • Letter: C

Question

Consider two gas stations. One is located at a major intersection used by people commuting from populous neighborhoods to jobs located in the downtown area. The other is located on the outskirts of the city. Both gas stations sell high-grade or premium-grade gas for a higher price than low-grade or regular-grade gas. However, the gas station along the more congested route charges higher gas prices for all grades than the station on the outskirts of town. Product differentiation within and among these gas stations is based on which of the following? Check all that apply. Intangible aspects of the product Location from which the product is sold Perceptions of the product Physical aspects of the product

Explanation / Answer

The correct answers should be A,B and C. The product is priced based on the location, the idea whether people think its good or bad based on brand and other intangible aspects.