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Intrinsic is when people buy a product by considering its perceived quality or satisfaction. On the other hand, extrinsic is when people buy a product by considering the reputation of products.In the lecture, the professor explains these concepts by giving an example of fruit juice.
When consumers buy a fruit juice based on perceived quality, since they already know the juice's taste and color, it matches consumers' expectation. This situation is called intrinsic.
However, when people buy a fruit juice by only looking its packaging or price, or with recommendation by others,it would not match their expectation. This situation is called extrinsic.
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