In General, Prices Should Not Be Based on Costs Because

question 28

Multiple Choice

In general, prices should not be based on costs because

• A)consumers are cost-conscious.
• B)producers rarely know what their costs are.
• C)consumers make their purchase decisions based on perceived value.
• D)producers need to avoid creating a cost competitive parity debate.
• E)customers are always right.

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Definitions:

Object Permanence

The awareness that things continue to exist even when not perceived.

Accommodation

In cognitive development, the process by which existing mental structures and behaviors are modified to adapt to new experiences.

Imprinting

The process by which certain animals form attachments during a critical period very early in life.

Assimilation

In cognitive development, Jean Piaget's concept where individuals integrate new information into existing cognitive schemas or frameworks.