When General Motors Introduced the Saturn, It Priced the SL

question 4

Multiple Choice

When General Motors introduced the Saturn, it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles. This is an example of the _____ pricing strategy.

• A) skimming
• B) penetration
• C) competitive
• D) leader

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Definitions:

Law of Effect

A psychological principle stating that behaviors followed by pleasant consequences are likely to be repeated, while those followed by unpleasant consequences are less likely.

Skinner

B.F. Skinner, an American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.

Pavlov

Refers to Ivan Pavlov, a Russian physiologist known for his research in classical conditioning, particularly the conditioned reflex experiment with dogs.

Potential Behavior

Behavior that an individual is capable of performing, which may be realized under certain conditions or when triggered by specific stimuli.