What Results Should Be Expected If a Firm Uses a Low

question 209

Multiple Choice

What results should be expected if a firm uses a low price strategy for its products?

• A) Low prices lead to a larger volume of sales.
• B) Low prices represent mid-level quality to consumers.
• C) Low prices represent low quality to consumers.
• D) Profits per unit are higher.
• E) Low prices lead to a lower volume of sales.

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Definitions:

Aversion

A strong dislike or disinclination toward something often because of anticipated negative consequences or outcomes.

Shock

A sudden and often distressing stimulus or event, which can be used in experiments as a form of aversive conditioning.

Comparator Model

A cognitive theory suggesting that the decision to act is based on comparisons between the expected outcome of an action and the current state.

Conditioned Stimulus 2

A stimulus that originally had no response but becomes conditioned to elicit a response through association with an unconditioned stimulus.