An Automobile Manufacturer Charges a Higher Price for Its Hybrid

question 200

Multiple Choice

An automobile manufacturer charges a higher price for its hybrid car that runs on both electricity and gasoline than it charges for a car that runs on only gasoline.The manufacturer contends that the consumer will save money with the hybrid car in the long run because the money saved on gasoline will more than cover the price differential between the hybrid car and a regular car.This manufacturer is using

• A)price leadership.
• B)price lining.
• C)value in use pricing.
• D)psychological pricing.
• E)reference pricing.

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Definitions:

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Freud

Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology.

Dreams

Mental experiences during sleep involving imagery, emotions, and thoughts, often considered significant in understanding subconscious desires and processing emotions.

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety or guilt by denying or distorting reality.