One Requirement for a Firm Pursuing a Price-Discrimination Strategy Is

question 126

Multiple Choice

One requirement for a firm pursuing a price-discrimination strategy is the ability to segment the market for its product.This means that

• A)the firm must set different prices for different regions where the product is sold.
• B)the firm must be willing to offer price discounts for senior citizens and children.
• C)the firm must be able to divide the market in a way that makes arbitrage impossible.
• D)the firm must choose a marketing strategy that appeals to different segments of the economy.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology used to diagnose mental disorders.

Availability Heuristic

A cognitive bias that influences people to overestimate the probability of events associated with memorable or vivid occurrences.

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Oversimplified and widely held beliefs about the characteristics of groups of people that can influence individual behavior and expectations.

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A method that attempts to determine if someone is lying by measuring physiological responses such as blood pressure, pulse, and perspiration.