Which of the Following Statements About a Free Pricing Strategy

question 40

Multiple Choice

Which of the following statements about a free pricing strategy is false?

• A) Free products and services can knock out potential and actual competitors.
• B) The free pricing strategy was born in the early days of the Web.
• C) It is difficult to convert free customers into paying customers.
• D) Free products and services can help build market awareness.

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Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often leading to an oversimplification of cause and effect.

Ingroup Bias

The tendency to favor one's own group over other groups, often leading to preference and loyalty towards members of the ingroup.

Bystander Effect

A phenomenon in social psychology where people are less inclined to assist a victim if there are other bystanders.

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, fostering cooperation and mutual aid.