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Why Do Marketers of New and Innovative Products Often Start

question 103

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Why do marketers of new and innovative products often start out with a price skimming strategy rather than a penetration strategy?


Definitions:

Cognitive Miser

A cognitive miser is a theory in social psychology suggesting that humans conserve cognitive energy by relying on heuristics or mental shortcuts to make decisions and judgments.

Motivated Tactician

A model of social cognition that characterises people as having multiple cognitive strategies available, which they choose among on the basis of personal goals, motives, and needs.

Role of Thought

The importance or function of cognitive processes in understanding and reacting to the environment.

Recency Effect

Refers to the tendency to remember the most recently presented information best.

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