You Are Introducing a New Product to the Market; in Fact

question 148

Multiple Choice

You are introducing a new product to the market; in fact, you are first with this new product to the marketplace. In developing your pricing strategy, it was decided that the price of the product should be at the maximum the market would bear. This is an example of what type of pricing strategy?

• A) going-rate pricing
• B) prestige pricing
• C) product-quality leadership
• D) market-skimming pricing
• E) market-penetration pricing

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Definitions:

Representativeness Heuristic

A mental shortcut where the likelihood of an object belonging to a category is judged based on how typical the object seems of that category.

Ease of Retrieval Effect

A cognitive bias where people judge an event to be more likely or frequent if examples of it come to mind easily.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

Upward Counterfactual

involves imagining or thinking about how a situation could have turned out better than it did, often leading to feelings of regret.