The Management at Allied Electronics Is Having Difficulty in Raising

question 46

Multiple Choice

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) ____ strategy in pricing these components.

• A)odd-even
• B)skimming
• C)lining
• D)penetration
• E)psychological

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Definitions:

Attention Zone

A state or period where an individual's focus is concentrated on specific stimuli, leading to better reception and processing of information.

Principle of Closure

A psychological tendency to perceive a complete image even when the sensory information is incomplete, based on our experience and expectations.

Positioning Strategy

The process of establishing and maintaining a distinct image of a product or service in the customer's mind.

Functional Attributes

Characteristics of a product or service that serve a practical purpose or provide utility to the consumer.