Adjusting the Annual Cost of Automobile Insurance Based on Mileage

question 29

Multiple Choice

Adjusting the annual cost of automobile insurance based on mileage driven is an example of ________ pricing.

• A)personalization
• B)trigger
• C)utilization
• D)fixed

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Definitions:

Cognitive Dissonance Theory

A psychological theory proposing that we experience discomfort or dissonance when our beliefs, attitudes, or behaviors are inconsistent, leading us to change one to reduce the dissonance.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Role-Playing

The act of imitating the character and behaviors of someone else, often as a learning tool or form of entertainment.

Dispositional Attribution

The process of attributing behavior to internal factors, such as personality traits, beliefs, or emotions, rather than external situational forces.