If Customers Perceive the Benefits of an Alternative to Be

question 16

Multiple Choice

If customers perceive the benefits of an alternative to be similar to that of a product,then the ________.

• A) switching cost is high
• B) price of the product should be increased to retain market share
• C) threat from the substitute is strong
• D) customers' bargaining power decreases

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Definitions:

Shadowing Performance

Involves repeating speech immediately after hearing it, a method used in psychological experiments to study attention and auditory processing.

Cocktail Party Effect

The ability of the human brain to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, much like being able to concentrate on a single conversation in a noisy environment.

Unattended Message

Information that is not directly focused on or noticed by an individual, especially in studies of selective attention.

Resource-Limited Processing

A concept in cognitive psychology that suggests there is a finite amount of cognitive resources available for processing information, which limits the number of tasks we can perform simultaneously.