Agatha's Inc

question 123

Essay

Agatha's Inc. is about to introduce a new product in the market, but is not sure as to how it should price the product. The company is facing intense competition from 5 other companies. In the past, it has also failed to keep up with the changing consumer wants. In such a situation, what should be its main objective?

---

Definitions:

Bystander-Calculus Model

A psychological framework explaining why individuals decide to intervene or not in emergency situations, based on personal cost-benefit analyses.

Affect-Cost Model

A theoretical framework explaining how emotions influence decision-making, particularly the evaluation of costs and benefits in social interactions.

Social Blunders

Mistakes or awkward situations created in social contexts due to misunderstanding or inappropriate behavior.

Diffusion of Responsibility

A socio-psychological phenomenon where individuals are less likely to take action or feel a sense of personal responsibility in the presence of a large group.