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Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese

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Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy?


Definitions:

Perceptual Set

Perceptual set refers to a predisposition or readiness to perceive something in a particular way, influenced by expectations, emotions, and experiences.

Bottom-up Processing

A method of information processing that starts with sensory input and builds up to the formation of perception from the basic stimuli.

Phi Phenomenon

A visual illusion where separate images shown in rapid succession appear to be a single moving image.

Phi Phenomenon

An optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession.

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