In Response to Price Cuts from Competitors,a Cereal Company with Several

question 131

Multiple Choice

In response to price cuts from competitors,a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line.This is an example of which of the following responses to a competitor's price cut?

• A) raising the perceived value of a product
• B) improving product quality
• C) accepting a reduced market share
• D) launching a "fighting brand"
• E) using high-low pricing

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Definitions:

Social Learning Theory

A theory that proposes people can learn new behaviors and norms through observational learning, by watching and imitating others.

Classical Conditioning

An educational method where two signals are frequently combined, leading to a response initially triggered by the second signal being provoked by just the first signal over time.

Psychoanalytic

A therapeutic approach and theory of psychology that emphasizes unconscious mental processes and childhood experiences in shaping behavior and personality.

Cognitive

Pertaining to mental processes such as thinking, learning, memory, and problem-solving.