FIGURE 12-8 -Figure 12-8 Above Represents the Final Three Generalized Steps in Generalized

question 74

Multiple Choice

FIGURE 12-8
-Figure 12-8 above represents the final three generalized steps in the pricing process.Assume pricing objectives and constraints, estimating demand and revenue, determining the cost, volume, and profit relationships have been completed.Accordingly, at this point cell "C" represents the step at which a firm would

• A)raise initial capital.
• B)scan competitors for price lines for similar products or services.
• C)select the appropriate pricing formula.
• D)select an approximate price level.
• E)make special adjustments to the list or quoted price.

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Definitions:

Mere Exposure Effect

The phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, also known as the "knew-it-all-along" effect.

Other-Race Effect

This phenomenon describes the tendency to more easily recognize faces of the race that one is most familiar with, which is often their own race.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.