Firm a Has Been Dealing in Baby Food Products for the Past

question 26

Multiple Choice

Firm A has been dealing in baby food products for the past 10 years and enjoys a good market share.Suppose a new firm enters the market to capitalize on the increasing demand for such products.However,the products of the new firm fail to attract customers.The failure of the new firm is due to

• A)the pioneering brand advantage of the incumbent.
• B)the learning curve effect.
• C)scale economies.
• D)the specific assets owned by the incumbent.

---

Definitions:

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired, leading to an association that causes a learned response to a previously neutral stimulus.

Observational Learning

Learning that occurs through observing the behavior of others.

Operant Conditioning

Operant Conditioning is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Stimulus Experience

The process of perceiving and responding to events or changes in the environment as stimuli.