When a Firm Improves the Quality and Increases the Price

question 144

Multiple Choice

When a firm improves the quality and increases the price of a product in reaction to a competitor making a price reduction,the firm is .

• A)moving its brand into a higher price- value position
• B)moving its brand into a less competitive position
• C)negatively positioning its product
• D)narrowing its target market
• E)creating a "fighter brand"

---

Definitions:

Precausal Thinking

A type of reasoning typical in early childhood where logic is not yet developed, leading to conclusions that don't follow logically from their premises.

Transductive Reasoning

A type of reasoning, especially noted in young children, where individuals make inferences from one specific event to another, often without understanding the underlying causal relationships.

Three Mountains Task

A cognitive development test used to assess a child’s ability to recognize different perspectives and viewpoints.

Perspective

A specific perspective or manner of looking at something; an outlook.