A Local Hardware Store Offers Flashlights at "3 for a Dollar

question 73

Multiple Choice

A local hardware store offers flashlights at "3 for a dollar." This action would indicate which of the following strategies?

• A)psychological pricing
• B)loss-leader pricing
• C)value-based pricing
• D)fair pricing

---

Definitions:

False Consensus Effect

The tendency to overestimate the number of other people who share one’s opinions, attitudes, values, and beliefs.

Illusion Of Control

The false belief that one can influence certain events, especially random or chance ones.

Fundamental Attribution Error

A cognitive bias that causes people to overemphasize personal characteristics and ignore situational factors in explaining others' behavior.

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.