In General, Prices Should Not Be Based on Costs Because

question 28

Multiple Choice

In general, prices should not be based on costs because

• A)consumers are cost-conscious.
• B)producers rarely know what their costs are.
• C)consumers make their purchase decisions based on perceived value.
• D)producers need to avoid creating a cost competitive parity debate.
• E)customers are always right.

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Definitions:

Learning Theorists

Psychologists or educators who study how people learn, including the processes involved and ways to improve learning and teaching methods.

Erikson

Refers to Erik Erikson, a developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings across eight stages of life.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a discipline concerned with the study of the unconscious mind.

Family and Culture

The collective influence that family traditions, values, and cultural background have on an individual's life and development.