La Belle Released a A Cut Glass Bottle of Perfume

question 121

Multiple Choice

La Belle released a a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

• A) seasonal pricing
• B) time-based pricing
• C) captive product pricing
• D) psychological pricing
• E) location-based pricing

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Definitions:

Encoding Specificity

The principle that suggests how we encode information into memory is specific to the context in which it is learned and that this encoding specificity affects how it is recalled.

Retrieval Cues

Specific stimuli or prompts that aid the recall of information stored in long-term memory, enhancing the ability to retrieve previously learned material.

Actor-observer Effect

The inclination to ascribe personal actions to external factors, while assigning the actions of others to their inherent traits.

Vicarious Reinforcement

Learning to replicate behavior by observing the consequences of others’ actions, rather than experiencing them firsthand.