The Strategy of Charging the Highest Possible Price for a Product

question 188

Multiple Choice

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as

• A) penetration pricing.
• B) price skimming.
• C) prestige pricing.
• D) sample pricing.
• E) odd pricing.

Understand the impact of experimenter and subject biases on research outcomes.

Identify the applications and limitations of correlational and experimental research designs.

Understand the principles and applications of different experimental designs in psychology, including single-blind and double-blind studies.

Recognize the evolution of psychology as a discipline and accurately define its current scope as the science of behavior and mental processes.

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Definitions:

Tort Liability

Legal responsibility that arises from the commission of a tort, which is a civil wrong, such as negligence, that causes harm to another.

Negligence

The failure to exercise a level of care that a reasonably prudent person would in similar circumstances, potentially causing harm or damage.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures in financial statements and other corporate events.

Public Company Accounting Oversight Board

A nonprofit organization established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.