Firms That Sell Highly Customized Items Such as Motorcycles Charge

question 61

Multiple Choice

Firms that sell highly customized items such as motorcycles charge higher mark-ups than firms selling similar,but homogeneous products.An explanation for their market power is the

• A) bandwagon effect.
• B) greater value effect.
• C) snob effect.
• D) behavioral effect.

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Definitions:

Cross-Categorization

The classification of individuals into multiple overlapping categories or groups based on their characteristics or attributes, which can reduce the effects of stereotyping and prejudice.

Postcategorization

The process or practice of reevaluating and possibly redefining categorizations, often in the context of social identities or classifications.

Precategorization

The early or initial process of classifying or sorting objects, ideas, or information into categories, often before more detailed analysis.

Robbers Cave

A landmark social psychology experiment by Muzafer Sherif that illustrated how intergroup conflict can arise from competition for resources and how it can be overcome by working towards shared goals.