If the Price of an Alternative Is Lower Than the Price

question 72

Multiple Choice

If the price of an alternative is lower than the price of an existing product, and customers perceive similar benefits from both the products, then the ________.

• A) switching cost is high
• B) price of the product should be increased to retain market share
• C) threat from the substitute is strong
• D) customers' bargaining power decreases

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Definitions:

Stereotyping

The practice of assigning oversimplified and generalized characteristics or beliefs to an entire group of people, disregarding individual differences.

Categories

Mental groupings of people, objects, events, or ideas that share common characteristics, allowing the brain to organize information efficiently.

Attitudes

Psychological tendencies expressed by evaluating an entity with some degree of favor or disfavor, influenced by experiences, beliefs, and behaviors.

Feelings

Emotional states or reactions that are subjective and experienced internally, influenced by personal perceptions, thoughts, and experiences.