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A Company Manufacturing Shampoo Charges a Low Price to Customers

question 39

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A company manufacturing shampoo charges a low price to customers who buy sachets on the premise that these customers belong to lower income groups and are more price sensitive.On the other hand, it charges higher prices to customers who purchase the same shampoo in bottles.This is an example of:


Definitions:

Competent

Possessing the necessary ability, knowledge, or skill to perform a specific task or job effectively and efficiently.

High Status

A position that garners substantial prestige, respect, and esteem within a societal or organizational hierarchy.

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others, in addition to the influence of beliefs, expectations, and intentions.

Self-Efficacy Beliefs

An individual’s belief in their ability to succeed in specific situations or accomplish a task.

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