The Price a Firm Charges for a Good or Service

question 12

Multiple Choice

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because

• A) the customer's disposable income is significantly higher than what the market demands.
• B) the customer captures some of that value in the form of a consumer surplus.
• C) regulatory mechanisms ensure that the customer is not overcharged for products/services.
• D) marketers implement psychological pricing tactics to ensure that customers perceive the prices to be low.

---

Definitions:

Organizational Resistance

Refers to the pushback or opposition by employees or stakeholders within an organization against changes or new policies introduced by management.

Organization Design

Organizing an entity's functions, duties, and frameworks to efficiently accomplish its objectives.

Fear of the Unknown

A psychological condition where individuals feel apprehensive or anxious about situations or events they have little to no information about.

Lewin's Approach

A psychological methodology developed by Kurt Lewin, emphasizing the dynamics of group behavior and change through the force field analysis concept.