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:

Value-Expressive Function

A psychological function wherein attitudes and preferences express the individual's central values and self-concept.

Motives

Internal psychological forces that prompt a person toward a particular action or behavior, typically stemming from personal desires or needs.

ABC Model

A cognitive behavioral approach that describes the relationships between antecedents, behavior, and consequences; often used in psychology to understand and modify behavior.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.