Pricing Above the Market Plays on the Common Assumption That

question 7

Multiple Choice

Pricing above the market plays on the common assumption that

• A) consumers are so uninformed that they won't know the difference.
• B) although consumers will not admit it,they like to pay higher prices.
• C) a desperate business in danger of failing must get the most for each item it sells.
• D) higher prices are much more popular now.
• E) higher price means higher quality.

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Definitions:

Freud

Sigmund Freud, originating from Austria and known for creating the psychoanalytic method, treated mental illnesses by facilitating discussions between a psychoanalyst and the patient.

Libido

A term used in psychoanalytic theory to denote the energy of the sexual drive as a component of the life instinct.

Infant

A very young child or baby, typically under the age of one year, at the earliest stages of development.

Sensations

The initial process of detecting and encoding environmental stimuli through the senses.