Many Companies Prefer to Follow Rather Than Challenge the Market

question 134

Multiple Choice

Many companies prefer to follow rather than challenge the market leader. Patterns of ________ are common in capital-intensive, homogeneous-product industries, such as steel, fertilizers, and chemicals.

• A) "feature fashion"
• B) "conscious parallelism"
• C) "supply delay"
• D) "predatory pricing"
• E) "covert security analysis"

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Definitions:

Cognitive Dissonance

The discomfort in one’s mind arising from holding several contradictory beliefs, ideas, or values at once.

Observational Learning

A form of learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Classical Conditioning

An educational method where learned reactions are developed through the relationship between an environmental trigger and a naturally existing stimulus.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas simultaneously.