When Hallmark Cards Introduced a Line of

question 188

Multiple Choice

When Hallmark cards introduced a line of $.99 cards (about half the price of the previously least expensive cards sold by Hallmark) ,the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a _____ pricing strategy.

• A)prestige
• B)skimming
• C)penetration
• D)demand-backward

Analyze the influence of default options and nudges on economic behavior.

Assess the validity and implications of behavioral economics' critique of the assumption of rationality in economic models.

Understand the function and impact of System 1 and System 2 in decision-making processes.

Recognize the effects of heuristics on human cognition and decision-making.

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Definitions:

Increased Conflicts

A situation where there is a rise in disagreements or disputes between individuals or groups.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with a person's ability to act independently.

Moral Emotions

Emotions that are directly linked to the behavior of oneself or others, influencing moral decision-making and ethical behavior, such as guilt, shame, or empathy.

Positive Attitudes

Feelings or opinions that involve a favorable view towards something or tendency to expect good outcomes.