In Using the Representativeness Heuristic,participants

question 41

Multiple Choice

In using the representativeness heuristic,participants

• A)extrapolate from a sample of evidence if the category is homogeneous but not if the category is heterogeneous.
• B)are sensitive to the sample size and draw conclusions more readily from a large sample.
• C)seem to assume that all instances of the category resemble the prototype for that category.
• D)rely on base rates.

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Definitions:

Price-insensitive Product

Products for which demand remains relatively constant regardless of changes in price, often due to unique attributes or lack of substitutes.

Product-line Pricing

A marketing strategy where a company sets different price points for various products in the same product line based on features, materials, or other value points to target different consumer segments.

Product-line Pricing

A marketing strategy that involves setting different prices for various items in a product line based on their features, costs, or market demand.

Customary Price

Customary price refers to the price that consumers expect to pay for a product or service, based on historical pricing, market standards, or common practice within a specific industry or region.