When Amazon Introduced the Kindle Fire Tablet Device at $199

question 138

Multiple Choice

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

• A)skimming
• B)price lining
• C)odd-even
• D)penetration
• E)loss-leader

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Definitions:

William James

A philosopher and psychologist who is often referred to as the father of American psychology, known for his work on pragmatism and functionalism.

Gestalt Psychology

A theory of mind and brain positing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies.

Cognitive Psychology

A branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Functionalism

A paradigm in psychology that focuses on how mental and behavioral processes enable an individual to adapt, survive, and flourish.