To Reduce the Price Sensitivity for Some of Its Products

question 20

Multiple Choice

To reduce the price sensitivity for some of its products, Washburn Guitars

• A) uses multiple suppliers for its raw materials.
• B) offers three months of free music lessons with the purchase of each guitar.
• C) uses endorsements by internationally known musicians who play Washburn signature guitars.
• D) offers a lifetime, unconditional warranty on all its instruments regardless of the price of its guitars.
• E) sponsors free music programs and special Washburn guitar camps for children.

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Definitions:

James-Lange theory

A theory of emotion that suggests that emotions occur as a result of physiological reactions to events.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Physical changes

Physical changes are alterations in the form, appearance, or structure of matter that do not change its identity or chemical composition.

Subjective Standard

A criterion for judgment based on personal feelings, tastes, or opinions rather than objective facts or evidence.