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Scenario B

question 94

Multiple Choice

Scenario B. You and a fellow investor are investigating the possibility of starting a new casino in Black Hawk, Colorado, a small town in the Rocky Mountains. It has been your lifelong dream. You have won the lottery and are trying to decide if this is what you want to do with your prize money. You decide to do an analysis of the competitive environment. After your analysis, you discover several important issues. First, it will cost most of your lottery winnings to finance a casino in Black Hawk! Second, it will be difficult to attract new customers because they have so many choices available to them in Black Hawk and the surrounding small towns. Finally, the competition in the casino industry is considered "fierce" by industry analysts and this is frightening to someone who has never even worked in the casino industry.
-The existence of savvy customers in an industry is an indication of

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Definitions:

Conditioning

A learning process in which an individual's behavior becomes associated with a particular stimulus or response.

Masked Behaviour

Actions or expressions that are deliberately designed to conceal one's true feelings, intentions, or identity.

Modelling

In social science, it refers to the process of learning and adopting behaviors by observing and imitating others.

Frequency Marketing

A promotional strategy that focuses on rewarding customers based on the frequency of their purchases.